ICE cotton steadies on bargain hunting, stronger grain market

The more active March 2026 cotton futures settled at 64.57 cents per pound, easing slightly by 0.08 cent. The contract had been on a declining trend and fell to 64.27 cents per pound earlier.

The market recovered intraday from early weakness as buying interest emerged at lower price levels. Bargain hunters stepped in as cotton appeared oversold following recent declines, providing near-term support.

Market analysts said there is visible bargain hunting, and although the market is oversold, the upside is currently limited. Significant gains are unlikely until more concrete news emerges regarding Chinese cotton-related purchases. China has begun buying US soybeans, wheat, and sorghum, raising expectations of expanded agricultural purchasing. Investors are closely watching whether China will broaden its buying programme to include additional commodities.

CBOT soybean futures held steady after falling the previous day, contributing supportive sentiment to cotton due to inter-market correlations.

Analysts stated that cotton is attempting to retest price levels below 64 cents and may consolidate sideways in the short term. Cotton could trend downward towards the end of the year unless unexpected macro or fundamental support emerges. The fibre retains strong upside potential if macroeconomic or fundamental catalysts turn favourable.

Historically, cotton is one of the more stable markets for a ‘Christmas rally’, with lower prices at this time of year often lifting seasonal demand.

ICE data showed deliverable No. 2 certified cotton stocks fell to 19,894 bales on December 1, 2025, down from 20,344 bales the previous day.

This morning (Indian Standard Time), ICE cotton for March 2026 traded at 64.69 cents per pound (up 0.12 cent), cash cotton at 62.57 cents (down 0.06 cent), the December 2025 contract at 62.77 cents (down 0.06 cent), the May 2026 contract at 65.84 cents (up 0.13 cent), the July 2026 contract at 66.87 cents (up 0.16 cent), and the October 2026 contract at 67.48 cents (down 0.21 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

ALCHEMPro News Desk (KUL)