ICE cotton rebounds on weak dollar and export demand

ICE cotton futures rallied, driven by a weaker US dollar and robust US cotton export sales. The dollar index declined following the Federal Reserve's 25-basis point rate cut, making US cotton more attractive to international buyers.

The USDA's weekly export sales report highlighted a significant increase in US cotton export sales for the current marketing year. Traders are now focused on the upcoming USDA's November WASDE report for further insights into global supply and demand dynamics.

While the seasonal period for increased sales is beginning, strong sales from August to October could pose challenges for the US cotton harvest, as a significant portion of farms rely on rainfall and the first freeze.

Currently, ICE cotton futures are trading slightly lower, with the December 2024 contract at 71.00 cents per pound and the March 2025 contract at 73.36 cents per pound. Cash cotton is trading at 66.80 cents per pound.