Yesterday, the ICE cotton May 2025 contract settled at 65.25 cents per pound (0.453 kg), down by 1.35 cents. Most cotton contracts also saw a declining trend, signalling broad-based weakness in the market.
Weak overall export sales of US cotton reflected poor global demand, although Chinese imports of US cotton showed slight improvement. The decline in grains and oilseeds at CBOT also dragged down cotton futures.
The US dollar experienced a slight rebound, making cotton purchases more expensive for overseas buyers. Uncertainty over Federal Reserve policies and interest rates continued to influence market sentiment. Crude oil remained weak due to tariff concerns, further affecting investor sentiment and adding pressure on cotton prices.
Trading volume surged to 63,937 contracts, the highest in seven sessions, while open interest continued to fluctuate as traders reacted to weak fundamentals. ICE deliverable No. 2 cotton stocks remained unchanged at 12,653 bales as of February 27, indicating stable warehouse inventory despite weak futures prices.
Market experts noted a challenging environment for cotton, with weak export sales, a strong dollar, and competition from other fibres reducing price support.
The ICE cotton May 2025 contract settled at 65.25 cents per pound (down 1.35 cents). Cash cotton settled at 63.25 cents (down 1.35 cents), the March 2024 contract at 63.88 cents per pound (down 1.32 cents), the July 2025 contract at 66.39 cents (down 1.29 cents), the October 2025 contract at 68.02 cents (down 0.92 cents), and the December 2025 contract at 67.88 cents (down 0.79 cents).
ALCHEMPro News Desk (KUL)
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