ICE Cotton Futures Rise on Stronger Crude Oil and Chinese Buying Expectations
ICE cotton futures continued their upward trend for the second consecutive day on Wednesday, recovering from recent losses. The recovery was driven by stronger crude oil prices and expectations of increased Chinese buying due to heat-affected crops in China. However, strength in the US dollar limited the upside.
The most active December 2026 contract settled at 88.22 cents, up 0.94 cent. This comes after a recent low of 85.56 cents per pound on Tuesday, which was the lowest level since August 19. The higher crude oil prices, which jumped around 4%, have made cotton more competitive against polyester due to increased manufacturing costs for synthetic fibers.
The US Dollar Index also moved higher, weighing on export demand by making dollar-denominated cotton more expensive for overseas buyers. Weather concerns remain a crucial factor, with continued heat and adverse weather conditions in major US cotton-growing areas keeping crop-loss concerns alive.