ICE cotton prices decline amid weaker crude oil and selling pressure

Yesterday, ICE cotton March 2025 contract settled at 67.14 cents per pound (0.453 kg), down by 0.52 cents. All contracts expect October 2025 eased down between 23 points to 52 points. October 2025 contract settled 17 points higher.

Although the dollar remained stable near a two-week low, its relative strength increased cotton costs for international buyers. Falling oil prices, hovering near a one-week low, made polyester cheaper, further pressuring cotton prices.

Trading volume stood at 39,439 contracts, compared to 43,816 contracts cleared the previous day. The two-week daily average trading volume reached 44,367 contracts, reflecting consistent activity despite sluggish price movements. The market's narrow sideways pattern suggests limited action but could indicate bottoming. According to ICE data as of January 21, deliverable inventory remained unchanged at 218 bales from the previous trading day.

Limited speculative buying and a producer-focused market have restricted price gains. Speculators continue to sell cotton as prices fall, while farmers sell during price increases to mitigate risks.

Meanwhile, Chicago corn and soybean futures retreated from multi-month highs, further impacting cotton prices.

Presently, ICE cotton for March 2025 was traded at 67.00 cents per pound (down 0.14 cent). Cash cotton was traded at 64.64 cents (down 0.52 cent), the May 2024 contract at 68.15 cents per pound (down 0.13 cent), the July 2025 contract at 69.23 cents (down 0.14 cent), the October 2025 contract at 69.47 cents (up 0.17 cent) and the December 2025 contract at 68.96 cents (down 0.18 cents). A few contracts remained at the level of the last closing, with no trading noted today.

ALCHEMPro News Desk (KUL)