ICE cotton futures slipped slightly on September 5, 2025, with the benchmark December contract closing at 66.20 cents per pound, leaving prices near a five-month low. The modest decline reflected broader market uncertainty, as a stronger U.S. dollar continued to pressure commodity prices by making cotton more expensive for international buyers. Weak U.S. employment data also weighed on investor sentiment, encouraging risk aversion. Meanwhile, falling crude oil futures further dampened cotton’s position in global markets, as lower energy prices improve the cost advantage of synthetic alternatives such as polyester.
Trading remained subdued, with 22,926 contracts exchanged during the session. However, open interest rose by 1,649 contracts, bringing the total to 245,983. Analysts noted that open interest has declined in only seven of the past 45 sessions, suggesting that speculative activity remains engaged despite the softer tone in prices. In addition, certified stock inventories of deliverable No. 2 cotton fell to 15,474 bales, highlighting a slight reduction in available supplies.
Market participants are now turning their attention to the upcoming U.
S. Department of Agriculture’s delayed weekly export sales report, expected on Friday.
The data is likely to provide critical insight into near-term demand for American cotton, particularly from key buyers such as China, Pakistan, and Vietnam. Traders are closely watching whether export orders can offset the downward pressure from macroeconomic factors and currency movements. Until then, cotton prices are expected to trade cautiously, reflecting a balance between weakening external conditions and supply-side adjustments.
