18 Mar '25
(Fibre2Fashion News Desk (KUL): ICE cotton futures eased on Monday due to profit booking after prices had risen for the last two weeks. Prices were hovering near their highest level in nearly four weeks. A lower US dollar, a rise in crude oil, and better cotton exports from Brazil also supported US cotton futures.
Insights
ICE cotton futures eased on Monday due to profit booking after a two-week rally.
May 2025 contract settled at 66.98 cents per pound, down 0.39 cent, while July futures fell 0.36 cent.
A weaker US dollar, rising crude oil, and strong Brazilian exports supported the market.
Analysts expect consolidation after recent gains.
Brazil's 2025 cotton planting area and output projections increased slightly.
Yesterday, the ICE cotton May 2025 contract settled at 66.98 cents per pound (0.453 kg), down 0.39 cent, July cotton futures at 68.24 cents per pound, down 0.36 cent, and December contract saw a fall of 12 points. The US dollar was hovering near a five-month low against the euro, as concerns about the economic impact of US trade policy kept investors cautious. Crude oil traded higher, supported by concerns about tight supply and prospects of growing demand. Higher oil prices could make polyester fibre more expensive, which is a man-made alternative to cotton.
The trading volume was 37,859 contracts, the lightest volume since February 27. On Friday, 45,046 contracts were cleared. Market analysts expect the market to consolidate or move sideways after its recent rally.
CBOT wheat futures climbed due to concerns about crop damage from drought and storms in the US grain-producing region, as well as hopes that reduced Russian exports would boost demand for US supplies.
The Brazilian Institute of Geography and Statistics (IBGE) reported that Brazil’s 2025 cotton planting area is expected to be 2,091,974 hectares, up 3.2 per cent from last month’s estimate and 0.2 per cent more than last year’s planting area. Brazil’s 2025 cotton production is estimated at 9,027,745 tons, up 0.2 per cent from last month’s estimate and 1.8 per cent more than last year’s output.
Brazilian cotton exports in the first two weeks of March totalled 132,294.75 tons, with an average daily export volume of 16,536.84 tons, a 30.84 per cent increase from the daily average of 12,639.29 tons in March 2024. Overall, while cotton futures faced a temporary pullback, underlying market dynamics and external factors suggest continued volatility and potential for upward movement in the near term.
Currently, ICE cotton for May 2025 is trading at 66.45 cents per pound (down 0.53 cent), cash cotton was traded at 64.48 cents (down 0.53 cent), the July 2025 contract at 67.76 cents (down 0.48 cent), the October 2025 contract at 69.81 cents (down 0.44 cent).
The December 2025 contract at 69.45 cents (down 0.41 cent), and the March 2026 contract at 70.67 cents per pound (down 0.18 cent). A few contracts remained at the level of the last closing, with no trading noted today. (Source: Fibre2Fashion.com)