ICE cotton gains on speculative buying after hitting one-month low

Yesterday, the ICE cotton March 2025 contract settled at 69.06 cents per pound (0.453 kg), up by 1.36 cents. Triple-digit gains in the first six months’ contracts had not been seen in over a month.

The trading volume was reported at 36,129 contracts, with 26,794 contracts cleared on Friday. Open interest decreased by 4,255 contracts, bringing the total to 240,612 contracts. Mills were active in buying as prices fell into the 60-cent range, considered attractive for purchases.

Stabilised grain markets, including corn, soybeans, and wheat, provided indirect support to cotton prices. Concerns about drought in Argentina further boosted corn prices, which helped cotton follow the grain market trend.

Data from the Commodity Futures Trading Commission (CFTC) showed that speculators increased their net short positions by 6,068 contracts, bringing the total net short positions to 44,804 contracts for the week ending December 17.

As of December 20, ICE’s deliverable No. 2 cotton futures contract inventory remained unchanged at 20,113 bales.

Presently, ICE cotton for March 2025 was traded at 69.16 cents per pound (down 0.26 cent). Cash cotton was traded at 66.92 cents (up 1.97 cents), the May 2024 contract at 70.20 cents per pound (down 0.27 cent), the July 2025 contract at 71.15 cents (down 0.21 cent), the October 2025 contract at 69.82 cents (up 1.08 cents), and the December 2025 contract at 70.23 cents (down 0.14 cent). A few contracts remained at the level of the last closing, with no trading noted today.

ALCHEMPro News Desk (KUL)