ICE cotton hits two-week low as traders stay cautious

The more active March 2026 cotton futures settled at 63.93 cents per pound, down 0.15 cents. The contract earlier touched 63.82 cents, the lowest level since November 21. For the week, the March futures contract posted a 1.2 per cent decline.

The US dollar eased on Friday but remained within its recent range; a softer dollar made USD-priced cotton relatively cheaper for overseas buyers.

Total traded volume rose sharply to 36,576 contracts, up from the previous day’s 25,359 cleared contracts.

USDA net export sales for the week ending October 30 were 81,500 bales, down 39 per cent from the previous week and 51 per cent below the four-week average. Net export sales for the next marketing year reached 7,900 bales, indicating modest forward demand.

Market analysts said export sales were poor, demand remained weak, and price fluctuations were expected; overall sentiment stayed cautious. March cotton futures are projected to trade in the short-term range of 63.00 to 65.20 cents per pound.

The USDA’s supply and demand report next week is expected to include updated crop production figures, providing fresh insight into global balance sheets. The next USDA export sales report for the week ending November 6 will be released Monday, following delays caused by the 43-day US government shutdown.

ICE certified deliverable stocks as of December 4 fell to 15,585 bales from the previous day’s 19,894. CBOT soybean futures also declined for the week, marking their first weekly loss in eight weeks due to demand uncertainty.

ICE cotton for March 2026 settled at 63.93 cents per pound (down 0.15 cents), cash cotton at 61.93 cents (down 0.15 cents), the December 2025 contract at 62.13 cents (down 0.15 cents), the May 2026 contract at 65.00 cents (down 0.23 cents), the July 2026 contract at 66.03 cents (down 0.23 cents), and the October 2026 contract at 66.93 cents (down 0.24 cents).

ALCHEMPro News Desk (KUL)