Cotton futures on the Intercontinental Exchange (ICE) fell as a stronger U.
S. dollar and a temporary halt in key U.S. government data releases dampened market sentiment. The December cotton contract dropped by 0.44 cents, or 0.70 percent, settling at 64.47 cents per pound.
The rally in the U.S. dollar has been a major headwind for cotton, making the commodity more expensive for overseas buyers and reducing global demand. With cotton priced in dollars, currency strength can significantly impact trade volumes, especially in key importing countries.
Market uncertainty has also been exacerbated by the ongoing U.S. government shutdown, which has suspended the release of crucial agricultural reports, including the World Agricultural Supply and Demand Estimates (WASDE), weekly export sales, and crop progress updates. The absence of these data points has left traders without reliable insights into supply and demand trends.
ICE’s certified cotton stocks have also declined slightly, falling from 17,891 bales to 16,471 bales, indicating a modest drawdown in deliverable inventory.
Meanwhile, China’s National Development and Reform Commission has announced its cotton import quota for 2026, totaling 894,000 tons. Of this, 33 percent is allocated to state trading enterprises, while 67 percent will be available to non-state traders, offering flexibility in trade methods and timing.
With limited data and ongoing currency pressure, the cotton market may continue to experience volatility. Traders are now closely watching for signs of resumed government reporting and any shifts in global economic indicators that could impact commodity demand.
