ICE cotton prices decline amid strong dollar and profit-taking

ICE cotton prices retreated due to profit-taking and a stronger US dollar, which made cotton more expensive for foreign buyers. Despite a rise in crude oil prices, which usually supports cotton by increasing production costs for synthetic alternatives like polyester, the cotton market remained mostly unaffected..

The December cotton contract closed at 72.08 cents per pound, down from the previous day's high. The US dollar index reached a two-month peak, making US cotton less competitive. However, rising crude oil prices, surpassing $72 per barrel, helped mitigate the decline.

Trading volume and open interest both fell significantly. The decline was attributed to speculative trading and the absence of major purchases from China. US equities ended the session mixed.

Traders are now focused on the USDA's weekly export sales report. ICE cotton for December 2024 is currently trading at 72.21 cents per pound. Cash cotton and some future contracts have seen minor changes.