ICE cotton records losses for sixth consecutive session on Monday

Yesterday, the ICE cotton March 2025 contract settled at 69.95 cents per pound (0.453 kg), down by 0.17 cents. The contract has posted a cumulative loss of 198 points over the last six sessions. Other contracts settled lower by 10 to 29 points on Monday, with cumulative losses of 144 to 179 points in the last six sessions.

Monday’s trading volume reached 38,238 contracts, while Friday’s cleared volume was higher at 41,394 contracts. Speculative traders reduced their net short positions in ICE cotton futures and options by 2,177 lots, leaving net short positions at 34,233 lots as of December 3, according to the Commodity Futures Trading Commission (CFTC).

ICE deliverable No. 2 cotton futures contract inventory rose to 16,696 bales as of December 6, up from 14,463 bales on the previous trading day.

A stronger US dollar on Monday, fuelled by cautious trading ahead of US inflation data, pressured commodities like cotton, making them more expensive for holders of other currencies.

Market analysts said that bearish demand is likely to persist until year-end, with continued volatility expected in the near term.

The December USDA supply and demand report, scheduled for release on December 11, was the primary market focal point.

Presently, ICE cotton for March 2025 was traded at 70.01 cents per pound (up 0.06 cent). Cash cotton was traded at 67.45 cents (down 0.16 cent), the May 2024 contract at 71.20 cents per pound (up 0.01 cent), the July 2025 contract at 72.31 cents (up 0.06 cents), the October 2025 contract at 71.31 cents (down 0.29 cent), and the December 2025 contract at 71.13 cents (down 0.01 cents). A few contracts remained at the level of the last closing, with no trading noted today.

ALCHEMPro News Desk (KUL)