ICE cotton futures declined on Wednesday, weighed down by favourable rainfall in Texas, a stronger U.
S. dollar, and continued weak market sentiment. The most active December cotton contract settled at 70.55 cents per pound, down 0.92 cent, while the March 2025 contract dropped to 72.
84 cents.
The U.S. dollar’s recent gains have made cotton more expensive for foreign buyers, dampening export demand. The market also faced pressure from falling crude oil prices, which tend to influence synthetic fiber markets and indirectly affect cotton demand.
Weather played a significant role in the market’s movement. Recent rainfall in Texas — a major cotton-growing region — eased earlier concerns over crop stress caused by dry conditions. While this is positive for crop prospects, it has led to a bearish tone among traders who had anticipated tighter supplies.
Despite the recent dip, analysts suggest the market is still waiting on clearer signals.
All eyes are now on the upcoming U.
S. Department of Agriculture (USDA) monthly supply and demand report, expected next week, which could provide key updates on production forecasts and export outlooks.
Market participants are also closely watching macroeconomic factors, including interest rate trends and global demand patterns, which continue to shape sentiment in the commodities space.
Until more concrete data emerges, cotton prices may remain under pressure as traders weigh improving weather conditions against broader economic concerns.
