Grains lift ICE cotton futures; crude slump limits gains

ICE cotton futures continued to rise yesterday, supported by gains in the US grain markets. Stronger grain prices offset weaker crude oil and profit-booking pressure in the market. However, US cotton trade flow slowed amid the ongoing government shutdown, which has now entered its fourth consecutive week.

ICE December cotton futures settled at 65.05 cents per pound, up 0.49 cents. The contract has successfully closed above the 65-cent level for three consecutive weeks. Cotton futures recorded four straight sessions of gains, reflecting continued recovery momentum. The contract has gained a total of 131 points over the last four sessions. Other contracts also ended higher, with gains ranging between 30 and 53 points.

The total trading volume for the session stood at 44,549 contracts, indicating moderate participation. The number of cleared contracts was reported at 52,963, compared to the previous day’s level, suggesting active clearing activity.

Market analysts said the rally in grain markets provided cross-commodity support to cotton prices, offsetting other bearish factors.

Chicago soybean futures hit a 15-month high on Tuesday, driven by optimism over upcoming US–Asia trade talks and positive expectations surrounding the US President’s visit to Asia.

Meanwhile, crude oil prices fell by nearly 2 per cent, marking their third consecutive daily decline, as traders evaluated the impact of US sanctions on Russia’s two largest oil companies and possible OPEC+ production increases.

Meanwhile, crude oil prices fell nearly 2 per cent, marking their third consecutive daily decline, as traders assessed the impact of US sanctions on Russia’s two largest oil companies and potential OPEC+ production increases.

The decline in oil prices made polyester—a key substitute fibre for cotton—cheaper for manufacturers, thereby reducing demand for cotton.

The US government shutdown, now approaching its fourth week, has delayed several major economic and agricultural reports, including the USDA’s monthly supply and demand report, adding uncertainty to market expectations. The shutdown has also slowed cotton trade flows, reducing access to official data and affecting overall market transparency.

Persistent trade tensions between the United States, the world’s largest cotton producer, and key importing nations continue to weigh on the global demand outlook for cotton.

As of this morning (Indian Standard Time), ICE cotton for December 2025 was trading at 65.05 cents per pound (unchanged), cash cotton at 62.55 cents (up 0.49 cent), the March 2026 contract at 66.60 cents (unchanged), the May 2026 contract at 67.82 cents (up 0.02 cent), the July 2026 contract at 68.93 cents (unchanged), and the October 2026 contract at 68.70 cents (up 0.39 cent). Some contracts remained at their previous closing levels, with no trading recorded so far today.