On Thursday, the ICE cotton March 2025 contract settled at 68.75 cents per pound (0.453 kg), down by 0.03 cents. The session recorded the lowest trading volume in two years, with only 13,139 contracts traded. Trading hours were reduced to 6 hours and 50 minutes, compared to the usual 17 hours and 20 minutes, due to the post-Christmas holiday schedule.

Price movements remained within a narrow range, with March futures settling just 3 points lower. Other contract months ranged from 8 points lower to 9 points higher.

NYMEX crude oil prices fell during light holiday trading, influenced by a stronger dollar, which made polyester, a cotton substitute, cheaper.

The USDA is set to release its weekly export sales report today, delayed due to the Christmas holiday.

Brazil’s 2024–25 cotton acreage is forecast at 2.12 million hectares, up 0.4 per cent from the November estimate, driven by a revision in Bahia state’s acreage forecast. Mato Grosso, Brazil’s largest cotton-producing state, maintained its acreage estimate at 1.56 million hectares. Bahia, the second-largest producing state, had its acreage forecast revised upward from 365,000 hectares to 374,000 hectares.

Brazil’s overall cotton acreage is expected to grow by 6.5 per cent compared to the previous year and exceed 2 million hectares for the first time in 36 years, according to Conab forecasts.

Presently, ICE cotton for March 2025 is trading at 68.74 cents per pound (down 0.01 cent). Cash cotton is trading at 66.92 cents (unchanged). The May 2024 contract is at 69.85 cents per pound (down 0.01 cent), the July 2025 contract at 70.91 cents (up 0.03 cent), the October 2025 contract at 69.50 cents (up 0.09 cent), and the December 2025 contract at 69.98 cents (up 0.03 cent). A few contracts remained at the same level as the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)