Yesterday, ICE cotton March 2025 contract settled at 68.69 cents per pound (0.453 kg) down by 0.37 cents. The contract touched a session’s low of 68.55 cents, the lowest level since November 19.
ICE cotton futures hit a one-month low as Brazilian farmers increased sales, driven by a weaker real and a rising dollar index, making exports more profitable.
March 2025 contract settled at 68.69 cents/lb, later dipping to 68.53 cents/lb.
Falling crude oil prices boosted polyester competitiveness, adding pressure.
Weak demand and economic uncertainty keep cotton’s outlook bearish.
US dollar index rose yesterday which makes cotton purchases expensive for overseas buyers. USD/BRL current pair hit an all-time high weakening the Brazilian real. It prompted Brazilian farmers to sell cotton as it became more profitable in local currency. Meanwhile, international crude oil prices slipped about 1 per cent to a one week low, making polyester, a cheaper cotton substitute, more competitive. It also dampened sentiments in cotton market.
Risk contagion from CBOT grains and ICE soft commodities weighed on the cotton market. Demand for cotton remained weak with no signs of improvement, adding to the bearish market sentiment.
ICE reported that as of December 16, deliverable No. 2 cotton futures contract inventory was unchanged at 20,113 bales. The near-term price outlook remains lower to sideways due to weak demand and economic uncertainties.
Presently, ICE cotton for March 2025 was traded at 68.53 cents per pound (down 0.16 cent). Cash cotton was traded at 65.19 cents (down 0.37 cent), the May 2024 contract at 69.69 cents per pound (down 0.13 cent), the July 2025 contract at 70.75 cents (down 0.09 cents), the October 2025 contract at 69.37 cents (down 0.07 cent) and the December 2025 contract at 69.81 cents (down 0.10 cents). A few contracts remained at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)
