ICE cotton futures fall for 2nd consecutive day on strong crop outlook

ICE’s most active December 2025 contract settled at 66.71 cents per pound (0.453 kg), down 0.61 cent—its lowest close since August 8. Other active contracts recorded losses between 35 and 59 cents.

Oil prices fell more than one per cent amid concerns over the Ukraine war and possible Russian fuel disruption, further reducing cotton’s competitiveness versus polyester.

Trading volume rose to 34,862 contracts compared with 29,805 a day earlier, raising the key question of whether the bottom level of 64.24 cents can hold.

US field reports show improving crop conditions across all regions, though several remain behind average. USDA reported 54 per cent of US cotton in good/excellent condition versus 40 per cent last year, reinforcing expectations of a large crop. Analysts noted that with more than half of the crop rated good to excellent, prices may fall toward 60 cents in the near term.

Mills are inquiring about new US crop, particularly high grades at cheaper levels, while sellers report sufficient bookings unless prices rise.

US stock indexes posted modest gains, nearing record highs, while commodities lagged equities. Futures slipped as higher Treasury yields and President Donald Trump’s dismissal of a Fed governor renewed concerns over central bank independence.

Grain markets ended mixed, trading above contract lows; Chicago soybeans partially recovered but a bumper harvest limited upside.

Overall sentiment remains bearish due to the strong crop outlook, weak external support, and downside risks toward 60 cents.

As of now, ICE cotton for December 2025 traded at 66.77 cents per pound (up 0.06 cent), cash cotton at 64.22 cents (down 0.52 cent), the October 2025 contract at 65.47 cents (down 0.52 cent), the March 2026 contract at 68.59 cents (up 0.06 cent), the May 2026 contract at 69.93 cents (up 0.05 cent), and the July 2026 contract at 70.70 cents (up 0.06 cent). A few contracts remained unchanged from their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)