ICE cotton eased on Tuesday with ending of six-day rally resulting from a number of components which triggered bearish tone out there. Declining crude oil, information about Trump’s plan to impose tariffs on the primary day of assuming his workplace, and better crop prospects in Brazil dragged down US cotton within the final buying and selling session.
Yesterday, ICE cotton March 2025 contract settled at 71.68 cents per pound (0.453 kg), down by 0.04 cents. The contract had hit a highest degree of 71.99 cents since November 12 on Monday.
ICE cotton costs eased on Tuesday, ending a six-day rally resulting from a stronger greenback, declining crude oil costs, and better crop prospects in Brazil.
The March 2025 contract settled at 71.68 cents per pound, down 0.04 cents.
Brazil’s expanded cotton acreage and potential tariff impositions added strain, whereas market exercise remained subdued forward of Thanksgiving.
Crude oil costs declined for the second day, lowering the price of polyester—a cotton substitute—and growing competitors for cotton within the world market. Nonetheless, greenback index was barely decrease which offered assist and capped fall in US cotton.
The buying and selling quantity on November 26 was 33,891 contracts, in comparison with 49,810 contracts cleared on November 25. As of November 25, the deliverable No. 2 cotton contract stock remained unchanged at 13,274 bales.
Brazilian farmers in newly expanded agricultural areas are planting extra cotton and fewer corn, additional strengthening the South American nation’s place because the world’s largest cotton exporter, surpassing the US. It raised prospects for greater manufacturing in Brazil.
The market remained delicate to commerce insurance policies, oil value actions, and world provide dynamics, with Brazil’s cotton growth posing a long-term aggressive problem to the US.
At current, ICE cotton for March 2025 was traded at 71.59 cents per pound (down 0.09 cent). Money cotton was settled at 67.68 cents (down 0.04 cent), the December 2024 contract at 73.37 cents per pound (up 0.17 cent), the Might 2025 contract at 72.71 cents (down 0.08 cents), the July 2025 contract at 73.90 cents (up 0.13 cent) and the October 2025 contract at 72.93 cents (up 0.60 cents). A couple of contracts remained on the degree of the final closing, with no buying and selling famous at this time.
