ICE cotton prices rose on Monday, 23rd Dec, just before the Christmas closing, driven by speculative buying after reaching a one-month low. March 2025 contract closed at 69.06 cents per pound, up 1.36 cents, with significant early contract gains not seen in over a month. Stabilized grain markets and mill purchases at favorable price levels supported the rally.
Trading volume totaled 36,129 contracts, while open interest fell by 4,255 contracts to 240,612. Speculators increased net short positions by 6,068 contracts, totaling 44,804 for the week ending December 17. Cotton followed the trend in grain markets, bolstered by rising corn prices due to drought concerns in Argentina.
ICE’s deliverable No. 2 cotton futures inventory remained unchanged at 20,113 bales as of December 20. Presently, March 2025 contract is trading at 69.16 cents per pound, with cash cotton at 66.92 cents, and mixed price movements in other contracts.
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