ICE December cotton futures settled at 65.68 cents per pound, up 0.14 cent. The March 2026 contract gained 0.15 cents to close at 66.88 cents per pound, while the May 2026 contract strengthened 0.12 cents to settle at 68.02 cents.
ICE cotton futures closed slightly higher on expectations of improving global demand, offsetting pressure from a stronger US dollar and stable crude oil prices. December 2025 futures settled at 65.68 cents per pound. Market confidence was supported by hopes for higher purchases of US cotton, although the ongoing government shutdown has delayed key USDA reports.
International crude oil futures were steady, with US WTI crude rising 0.04 to settle at $61.02 per barrel. The oil market balanced OPEC+’s latest supply increase with its proposal to suspend production cuts in the first quarter of 2026. However, concerns about a potential oil surplus and weak Asian manufacturing data persisted. Lower oil prices make polyester (a cotton substitute) relatively more affordable, thus reducing the demand for cotton.
The U.S. dollar hovered near a three-month high on Monday, making cotton more expensive for foreign buyers holding other currencies. The US dollar index rose 0.077 points to 99.707, while the Indian rupee weakened slightly by 0.01 points to close at 88.78 per dollar.
According to data released by ICE, as of October 31, the inventory of No. 2 cotton futures contracts remained unchanged at 13,749 bales.
Market analysts said the market was expecting more buying of U.S. cotton. The US cotton harvest is nearing completion, reducing hedging pressure on prices.
Investors continued to look for updates on cotton export activity as the ongoing US government shutdown has led to the suspension of key USDA reports, including monthly World Agricultural Supply and Demand Estimates (WASDE) and weekly export sales data.
The latest data from the International Cotton Advisory Committee (ICAC) showed that global cotton production for 2025-26 is estimated at 25,399,600 tonnes, up from 25,438,600 tonnes last month. Global production for 2024-25 is estimated at 25,391,200 tonnes. Global cotton ending stocks for 2025-26 are projected at 16,227,900 tonnes, up from 15,378,700 tonnes last month, representing a year-on-year increase of 2.5 percent. Final stocks for 2024-2025 are estimated at 15,835,800 tons.
Overall, the ICE cotton market remained supported by expectations of improving demand, even as traders closely monitored dollar movements, crude oil trends and delayed data on US exports.
As of this morning (Indian Standard Time – IST), December 2025 ICE cotton was trading at 65.62 cents per pound (down 0.06 cents), spot cotton at 63.18 cents (up 0.14 cents), March 2026 contract at 66.84 cents (down 0.04 cents), May 2026 contract at 68.01 cents (0.01 cents less), the July 2026 contract at 69.10 cents (0.03 cents less) and the October 2026 contract at 68.98 cents (0.15 cents more). Some contracts remained unchanged and no transactions have been recorded so far.
Fiber2Fashion (KUL) News Desk
