Insights
- ICE cotton futures posted slight daily gains but extended their bearish trend with a third consecutive weekly decline, driven by prices falling below US production costs and pressure from a stronger dollar.
- March 2026 settled at 63.85 cents per pound, while December 2025 dropped to 61.35 cents.
- Weak sentiment persists as open interest hit a 12-year low.
ICE cotton futures maintained a bearish trend despite slight gains yesterday. The market posted a weekly decline, marking the third consecutive week of losses. Industry discussions highlighted that current US cotton prices are below the cost of production for American growers, while a stronger US dollar added further downward pressure on ICE cotton.
ICE March 2026 cotton futures settled at 63.85 cents per pound, up 0.11 cents, after touching a low of 63.11 cents and registering a weekly loss of 0.28 cent. December 2025, March, May and July 2026 contracts all hit new intraday lows as broader market pressure continued. December 2025 ended at 61.35 cents, down 0.33 cent. Other contracts closed between 4 and 29 points higher. On a weekly basis, December 2025 was down 114 points, while May 2026 declined 28 points.
A stronger US dollar added pressure by making dollar-denominated cotton more expensive for overseas buyers, reducing price competitiveness.
Session volume reached 35,770 contracts compared with 35,679 contracts in the previous session. The weekly average volume for November 17–21 reached 50,935 contracts due to heavier trading on Monday and Tuesday. December 2025 open interest began at just 145 contracts, and 59 notices were issued, marking the lowest first-notice-day open interest in at least 12 years.
Source: fibre2fashion.com