ICE cotton rebounds after four-day drop as market sentiment improves

ICE’s most active December 2025 contract settled at 66.64 cents per pound (0.453 kg), up 0.42 cent, after hitting an intraday high of 67.02 cents. Other contracts gained between 21 and 38 points.

Crude oil rose by more than $1 on Tuesday after talks to resume exports from Iraq’s Kurdish region stalled, heightening supply concerns. The increase in oil prices has made polyester—cotton’s main substitute—more expensive, improving cotton’s attractiveness.

The US Department of Agriculture (USDA) unveiled its Three-Point Plan to support agriculture, further lifting sentiment. The plan includes a new trade promotion track to push deal-oriented missions and targeted bilateral gains; modernising export-finance tools, refining the GSM-102 programme, and adding more foreign financial institutions; and reciprocity-linked market access offering tariff relief or incentives once partners finalise qualifying deals.

Market analysts said that strong demand around the 66-cent level has persisted through spring, summer, and into autumn, with mills and traders actively buying at that point.

USDA’s weekly crop progress report showed US cotton planting at 60 per cent for the week ending September 21, up from 50 per cent the previous week.

Government stimulus through low interest rates and deficit spending is expected to eventually support cotton prices. Last week, the Federal Reserve cut its policy rate by 25 basis points to 4.00–4.25 per cent, marking its first cut since December and signalling a gradual easing cycle to address labour market concerns.

Traders are now awaiting USDA’s weekly export sales report on Thursday for further direction on demand.

Elsewhere, CBOT soybean futures ended slightly higher, recovering from a six-week low.

ICE data showed deliverable No. 2 cotton contract stocks were unchanged at 15,474 bales as of September 22.

Currently, ICE cotton for December 2025 is trading at 66.64 cents per pound (unchanged), cash cotton at 64.64 cents (up 0.42 cent), the October 2025 contract at 64.53 cents (up 0.21 cent), the March 2026 contract at 68.54 cents (down 0.02 cent), the May 2026 contract at 69.89 cents (down 0.04 cent) and the July 2026 contract at 70.94 cents (down 0.01 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)