ICE cotton dips on weak export outlook, crude oil decline

On Thursday, the ICE cotton May 2025 contract settled at 66.47 cents per pound (0.453 kg), down 0.16 cent from the previous day. The July contract fell by 0.31 cent to settle at 67 cents.

Crude oil prices dropped by over $2 per barrel on concerns over global economic growth. Falling crude oil makes polyester fibre—a man-made alternative to cotton—cheaper. The weak US dollar also failed to bolster international cotton demand.

As of April 9, ICE cotton futures contract stocks remained unchanged at 14,488 bales.

Market analysts noted that the USDA report was neutral to negative, but market psychology and broader macroeconomic sentiment played a larger role. The USDA’s April WASDE report lowered the 2024–25 US cotton export estimate to 10.9 million bales, down from 11 million. US ending stocks were increased to 5.0 million bales, up 100,000 from March.

Weekly export sales for the week ending April 3 showed net sales of 115,100 bales, down 11 per cent from the previous week. Brazil’s 2024–25 cotton production is estimated at 3.8908 million tons, up 5.1 per cent from 2023–24.

Broader financial markets declined sharply due to concerns over US tariffs and their economic impact.

At present, ICE cotton for May 2025 is trading at 66.83 cents per pound (up 0.36 cent), cash cotton at 64.22 cents (down 0.16 cent), the July 2025 contract at 67.25 cents (up 0.25 cent), the October 2025 contract at 68.62 cents (down 0.29 cent), the December 2025 contract at 68.50 cents (up 0.22 cent), and the March 2026 contract at 69.61 cents per pound (up 0.21 cent). A few contracts remained unchanged from the last close, with no trading observed today.

ALCHEMPro News Desk (KUL)