ICE cotton continues to rise on fourth session in a row

Yesterday, ICE cotton March 2025 contract settled at 71.72 cents per pound (0.453 kg) up by 0.95 cents. Earlier in the session, the contract hit a highest level of 71.99 cents since November 12. December contract rose by 1.55 cents, while other contracts gained up to 0.83 cent.

Dollar index eased by 0.61 per cent to 106.83, which was 1 per cent below its two-year high from last Friday. Falling dollar made cotton purchase affordable for overseas buyers. Crude oil prices dropped by over $1 per barrel on Monday. It reduced cost of production of polyester, which is man-made substitute of cotton.

Analysts said that weaker dollar and higher exports sales from the US are driving factors for the natural fibre.

The trading volume on November 25 reached 49,810 contracts, with 29,105 contracts cleared last Friday. ICE deliverable cotton inventories remained at 13,274 bales as of November 22, unchanged from the previous day.

USDA (US Department of Agriculture) reported that US cotton harvesting reached 84 per cent completion, compared to 77 per cent the previous week, 81 per cent in the same period last year, and the five-year average of 80 per cent.

At present, ICE cotton for March 2025 was traded at 71.40 cents per pound (down 0.32 cent). Cash cotton was settled at 67.72 cents (up 0.95 cent), the December 2024 contract at 73.20 cents per pound (up 1.55 cent), the May 2025 contract at 72.45 cents (down 0.27 cents), the July 2025 contract at 73.34 cents (down 0.34 cent), and the October 2025 contract at 72.33 cents (up 0.68 cents). A few contracts remained at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)