07 Mar '25
(Fibre2Fashion News Desk (KUL): ICE cotton futures gained over 2 per cent on Thursday, supported by a weaker US dollar and higher exports.
A lower US dollar index made cotton purchases more attractive, while increased demand and rising US cotton exports boosted market sentiment. Gains in agricultural commodities, driven by eased concerns over the tariff war, also positively influenced cotton prices.
Insights
ICE cotton futures rose over 2 per cent, driven by a weaker US dollar and strong US export sales.
A falling dollar made cotton more attractive to overseas buyers, while improved demand and rising exports lifted market sentiment.
High oil prices and easing tariff concerns also supported gains.
USDA data showed export sales up 45 per cent, reinforcing positive momentum.
Yesterday, the ICE cotton May 2025 contract settled at 65.21 cents per pound (0.453 kg), up 1.454 cents (2.42 per cent). The May contract recorded its third gain in the last four sessions but saw a net loss of 4 points over these sessions. The December futures settled at 68.09 cents, up 1.29 cents, marking its third gain in four sessions, with a net gain of 21 points over the period. Other contracts also settled with gains between 95 to 154 points yesterday.
The dollar index slipped 0.4 per cent to its lowest level since November 2024, making dollar-priced cotton cheaper for overseas buyers. Cotton demand has improved significantly since before Christmas.
High oil prices and improved demand dynamics continue to influence cotton prices, alongside broader agricultural market trends and trade policy developments. NYMEX crude futures remained steady, while Brent crude settled below $70 a barrel, pressured by US tariffs and OPEC+ plans to increase production.
Trading volume reached 68,518 contracts, with 52,648 contracts cleared the previous day. ICE’s deliverable No. 2 cotton futures contract inventory increased to 14,433 bales as of March 5, up from 13,771 bales the previous day.
The USDA’s export sales report for the week ending February 27 showed that US cotton export sales increased by 241,500 bales, up 45 per cent from the previous week and 6 per cent above the four-week average. Export shipments reached 334,000 bales, up 25 per cent from the previous week and 28 per cent above the four-week average.
Chicago soybean, corn, and wheat futures rose for a second straight session, rebounding from multi-month lows, supported by potential US tariff reductions on Canada and Mexico, easing trade concerns.
Currently, ICE cotton for May 2025 is trading at 65.04 cents per pound (down 0.17 cent). Cash cotton is trading at 63.21 cents (up 1.54 cents), while the March 2024 contract stands at 63.90 cents per pound (up 1.54 cents). The July 2025 contract is at 66.20 cents (down 0.13 cent).
The October 2025 contract at 68.20 cents (up 1.19 cents), and the December 2025 contract at 67.91 cents (down 0.18 cents). Some contracts remain unchanged from the last closing, with no trading noted today. (Source: Fibre2Fashion.com)