ICE cotton prices experienced a third consecutive day of decline, settling at 72.
72 cents per pound, down 0.3 cents. This drop occurred despite supportive external factors and concerns about crop damage from Hurricane Helene, which impacted key cotton-producing regions in the U.S.
While crude oil prices rose recently, they still recorded weekly losses due to anticipated increases in global supply and new stimulus measures from China. The rise in crude oil prices typically boosts cotton prices as they make polyester, a cheaper alternative, less attractive. However, the recent gains were insufficient to prop up cotton prices.
Market dynamics were primarily influenced by weak demand, overshadowing concerns about potential crop losses due to Hurricane Helene. Initial estimates suggested losses could range from 300,000 to 500,000 bales, but these figures remain speculative at this early stage of damage assessment.
Although Hurricane Helene was downgraded to a tropical storm as it moved inland, expectations of crop damage did not significantly impact market behavior.
Trading volume on ICE cotton futures reached 36,854 contracts, with open interest starting the day at 230,255 contracts, a decrease of 593 contracts from the previous session.
The latest ICE data from September 26 indicated that the inventory for deliverable No.
2 cotton futures remained steady at 265 bales.
Other contract settlements included cash cotton at 66.22 cents (down 0.30 cent), the October contract at 73.54 cents (down 0.32 cent), March 2025 at 74.52 cents (down 0.25 cent), May 2025 at 75.61 cents (down 0.26 cent), and July 2025 at 76.08 cents (down 0.26 cent).
