ICE cotton recovers on short covering after three-day fall

ICE’s most active December 2025 contract settled at 67.81 cents per pound (0.453 kg), up 0.27 cent. The rest of the board closed mixed, ranging from 32 points higher to 3 points lower.

Rising international oil prices increased the cost of polyester, a substitute for cotton.

Trading volume for the day was 31,132 contracts, compared with Friday’s cleared volume of 35,560 contracts and last week’s daily average of 48,375 contracts. According to CFTC (Commodity Futures Trading Commission) data, speculators increased their net short position in ICE cotton futures and options by 1,222 contracts to 61,977 in the week ending August 12, while ICE data showed deliverable No. 2 cotton futures inventory at 17,017 bales as of August 15, unchanged from the prior trading day.

USDA Crop Progress Report for the week ending August 17, 2025, showed cotton condition rated good to excellent at 55 per cent, up from 53 per cent last week and 42 per cent a year ago. Cotton squaring was reported at 97 per cent, nearly in line with the 5-year average of 98 per cent. Setting bolls stood at 73 per cent, below the 5-year average of 80 per cent. Bolls opening reached 13 per cent, slightly lower than the 5-year average of 16 per cent.

Overall crop conditions improved slightly from last week and remain significantly better than last year.

Market analysts said that funds are covering short positions from last week and the market appears balanced until more clarity emerges on demand and weather conditions. The market still has upside potential, with prices possibly rising to the 68.5–69 cents range, and investors are now awaiting US export sales data later this week.

Currently, ICE cotton for December 2025 was traded at 67.66 cents per pound (down 0.15 cent), cash cotton at 65.17 cents (up 0.32 cent), the October 2025 contract at 66.44 cents (up 0.02 cent), the March 2026 contract at 69.18 cents (down 0.15 cent), the May 2026 contract at 70.50 cents (down 0.10 cent) and the July 2026 contract at 71.22 cents (down 0.12 cent). A few contracts remained at their previous closing levels, with no trading recorded.

ALCHEMPro News Desk (KUL)