ICE cotton futures market inched up

ICE cotton futures market inched up. Contract of Dec closed at 67.6cent/lb, up 0.04cent/lb and contract of Mar closed at 69.24cent/lb, up 0.05cent/lb. The August USDA monthly supply and demand report significantly downward revised U.S. cotton planted acreage, resulting in a sharp reduction of 300,000 metric tons in U.S. cotton production. Following this adjustment, U.S. cotton ending stocks improved noticeably. However, the market continues to monitor whether the USDA will make further revisions to production figures. Currently, global supply remains relatively ample, with Brazilian cotton output still expected to be high, and the USDA also raising its forecast for Chinese cotton production. Nevertheless, U.S. cotton sales for the 2024/25 season have been strong, supporting solid fundamental conditions and firm ICE cotton futures prices. In contrast, sales progress for the 2025/26 season has been slower year-on-year. The market is closely watching potential changes in U.S. tariff policies toward major Southeast Asian textile and apparel manufacturing countries, which could impact U.S. cotton exports in the 2025/26 season.

Cotlook A Index declined by 0.35cent/lb to 78.95cent/lb.