ICE cotton futures gave up earlier gains as weaker crude oil, speculative selling, and currency pressures dragged the market lower.

The most active March 2025 contract retreated, settling at around 67.14¢ per pound, down 0.52¢. Other contracts also ended in negative territory, with the exception of October 2025, which managed a modest 17-point gain.

The fall in crude oil, now at near one-week lows, was a major factor. Cheaper oil makes polyester production less expensive, putting pressure on cotton as a competing fiber. At the same time, a firmer US dollar increased costs for overseas buyers, weakening international demand and investor sentiment.

Broader agricultural markets also weighed on cotton, with corn and soybean prices trending lower and pulling down overall commodity confidence.

Trading activity reflected a cautious environment. Daily volumes stood at 39,439 contracts, compared with 43,816 the previous session, and slightly below the two-week daily average of 44,367 contracts. Deliverable certified stocks held steady at 218 bales, indicating little supply-side pressure to push prices higher.

Market watchers noted that the trading pattern remains largely range-bound, with limited speculative buying. Producers and commercial hedgers continue to dominate the market, keeping prices stuck in a narrow band.

For now, the outlook depends heavily on external drivers such as crude oil trends, currency movements, and demand recovery in key importing nations. A rebound in oil or signs of stronger global consumption could lend support. Until then, cotton prices appear set to consolidate as traders tread cautiously in a volatile commodities landscape.