ICE cotton ends lower despite initial gains from weaker dollar

Yesterday, the ICE cotton March 2025 contract settled at 69.06 cents per pound (0.453 kg), down by 0.21 cents. The contract has posted a cumulative loss of 109 points over the last three sessions and has seen a decline in ten of the past 11 sessions. The contract has lost 287 points in the last 11 sessions. Other contracts slipped 10 to 34 points in the last session, with net losses ranging from 217 to 314 points.

The trading volume was light at 23,010 contracts, the lowest since August 2, although other sessions since then have seen similar volumes. On Friday, 26,301 contracts were cleared.

As of December 13, ICE deliverable No. 2 cotton contract stocks remained unchanged at 20,113 bales.

According to a report by the Commodity Futures Trading Commission (CFTC) for the week ending December 10, speculators increased their net short positions in ICE cotton futures and options by 4,503 contracts to a total of 38,736 contracts.

Market analysts said that a close above 70 cents could lead to a technical rally towards 71 cents before Christmas, but the market did not achieve this level. Market activity is expected to remain subdued during the Christmas week, after Christmas, and into January. The lack of shipments is a key factor adding pressure to the cotton market.

The market’s 11-session trend and pre-holiday light trading suggest continued weakness unless significant demand or shipment activity emerges.

Currently, ICE cotton for March 2025 is traded at 69.07 cents per pound (up 0.01 cent). Cash cotton is traded at 65.56 cents (down 0.21 cents), the May 2024 contract at 70.24 cents per pound (up 0.02 cent), the July 2025 contract at 71.28 cents (up 0.01 cent), the October 2025 contract at 69.87 cents (down 0.32 cent), and the December 2025 contract at 70.28 cents (down 0.05 cents). A few contracts remained at the level of the last closing, with no trading noted today.

ALCHEMPro News Desk (KUL)