ICE cotton gains on weak dollar, strong export demand

The most active March 2026 cotton futures settled at 64.24 cents per pound, up 0.23 cent. Other contracts posted gains ranging between 20 points and 36 points, reflecting modest optimism across the curve.

Currency markets also supported cotton, as the US dollar index weakened further. The dollar index is projected to record its largest annual decline since 2017, making dollar-denominated commodities such as cotton more affordable for overseas buyers.

Market participation eased, with total trading volume at 26,334 contracts, sharply lower than the 40,005 contracts cleared in the previous session.

Spot cotton prices were quoted near $63.80 per pound, up approximately 0.09 per cent on the day. Traders cited export demand as a key supportive factor, particularly strong buying interest from Asia.

Market analysts said Vietnam was the largest buyer and described the recent purchase as the biggest seen in some time, significantly improving market sentiment. According to the US Department of Agriculture, net US cotton export sales for the current marketing year totalled 304,700 bales for the week ended December 11. This represented an increase of 99 per cent from the previous week and 95 per cent above the four-week average, signalling a sharp rebound in demand.

In outside markets, CBOT soft red winter wheat futures rose for a fifth consecutive session. Gains were attributed to short covering amid concerns over escalating tensions in the Black Sea export region and adverse weather conditions in Russia’s wheat-growing belt ahead of the Christmas holidays.

Precious metals remained strong, with gold closing at a new all-time high and silver posting its fourth consecutive record close, reflecting broader commodity strength.

According to data released by Intercontinental Exchange, deliverable stocks of No. 2 cotton futures contracts remained unchanged at 11,600 bales as of December 23.

ALCHEMPro News Desk (KUL)