Crude oil surge and trade optimism lift ICE cotton futures

ICE December cotton futures settled at 64.07 cents per pound, up 0.33 cents. Market analysts noted that restrictions on crude oil imports from Russia triggered a major rally in the crude oil market. The surge in crude prices consequently boosted the cotton market.

International crude oil prices rose by more than 5 per cent on Thursday, reaching their highest level in two weeks, after the Trump administration announced sanctions on two major Russian oil companies—Lukoil and Rosneft. The sanctions restricted exports and transactions involving these firms, creating supply concerns and fuelling a rally across global energy markets.

Higher crude oil prices make polyester, a synthetic alternative to cotton, more expensive, thereby increasing relative demand for natural cotton fibre. Optimism about easing US–China trade tensions further strengthened market sentiment. Additionally, Chicago soybean and corn futures extended gains on Thursday, hitting a one-month high, driven by the jump in crude oil prices and the US sanctions on Russian oil giants.

The strength in broader agricultural commodities also reflected spillover demand optimism, as investors anticipated improved trade flows between the US and China.

Meanwhile, the ongoing US government shutdown entered its third consecutive week, delaying the release of several key economic and agricultural reports, including the US Department of Agriculture’s monthly World Agricultural Supply and Demand Estimates (WASDE) report.

The lack of fresh government data added an element of uncertainty to the short-term market direction but did not deter bullish momentum driven by energy and trade factors.

Data released by the Intercontinental Exchange (ICE) showed that as of October 22, 2025, the deliverable No. 2 cotton contract inventory stood at 17,552 bales, unchanged from the previous day.

Today morning (Indian standard time- IST), ICE cotton for December 2025 was traded at 64.05 cents per pound (down 0.02 cent), cash cotton at 61.57 cents (up 0.33 cent), the March 2026 contract at 65.68 cents (up 0.01 cent), the May 2026 contract at 66.82 cents (down 0.10 cent), the July 2026 contract at 68.06 cents (down 0.03 cent), and the October 2026 contract at 68.02 cents (up 0.26 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

ALCHEMPro News Desk (KUL)