ICE Cotton Futures Retreat Amid Profit-Booking and Weaker Crude Oil

The ICE cotton futures market experienced a slight retreat due to profit-taking and weaker crude oil prices. The December 2026 contract settled at 82.46 cents, down 0.11 cent from the previous day's close.

Cotton speculators reduced their net long positions by around 2,000 contracts, contributing to the market's downward pressure. However, analysts attributed the decline to profit-booking rather than a change in underlying market fundamentals.

The ongoing hot and dry weather in West Texas continues to provide support for cotton prices, despite the recent weakness. Crude oil prices fell by 5% to a three-month low, which is expected to reduce polyester production costs and make synthetic fibers more competitive with cotton.