ICE Cotton Futures Soar to Three-Month High on Crop Worries and Weaker Dollar

The ICE cotton futures market has continued its bullish trend, with December 2026 contracts reaching a fresh three-month high of 85.48 cents. This comes on the back of crop concerns and a weaker US dollar.

China's reserve sale remained strong, with the 21st consecutive 100% sold-out auction. However, commercial cash buying from Chinese mills remains quiet due to high prices.

The US crop condition has deteriorated, with only 38% of cotton rated as 'Good' or 'Excellent'. The main production risk remains hot and dry weather in West Texas.

ICE certified stocks have fallen to 72,626 bales, while global stock levels are at their lowest since 2011-12. Consumption is running over 5 million bales above production, adding to the bullish sentiment.