ICE cotton dips further on trade tension; market may stabilise soon

ICE December cotton futures settled at 63.59 cents per pound, down 0.25 cents or 0.39 per cent. All major cotton futures contracts recorded declines between 16 and 34 points. The May 2026 contract hit a new all-time intraday low.

US crude oil futures rose after hitting a five-month low earlier, supported by easing tensions. Rising oil prices make polyester—a cotton substitute—more expensive, potentially supporting cotton demand.

During the session, 43,552 contracts were traded, while Friday’s cleared contracts totalled 75,880. The average daily volume last week was 46,655 contracts, indicating slightly higher trading activity earlier.

ICE deliverable No. 2 cotton contract inventory, as of October 10, stood at 16,471 bags, unchanged from the previous day.

Market analysts noted that after Friday’s new lows, prices were choppy but showed signs of stabilisation during Monday’s trade. The market appears to be bouncing off the lows and may be entering a consolidation phase.

Persistent trade tensions continued to weigh on global cotton demand and investor confidence.

CBOT soybean futures ended steady after a sharp decline in the previous session caused by trade-related concerns.

The ongoing US government shutdown has delayed key reports, including the USDA monthly supply and demand report, limiting available market data.

Brazilian export data from Secex showed that shipments in the first two weeks of October totalled 91,157.02 tons, with a daily average of 11,394.63 tons—down 11 per cent from 12,770.24 tons last October. Total monthly exports last year were 280,945.36 tons.

Currently, ICE cotton for December 2025 is trading at 63.36 cents per pound (down 0.23 cent), cash cotton at 61.34 cents (down 0.63 cent), the March 2026 contract at 65.06 cents (down 0.20 cent), the May 2026 contract at 66.38 cents (down 0.18 cent), the July 2026 contract at 67.63 cents (down  0.16 cent) and the October 2026 contract at 67.67 cents (down 0.25 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)