ICE cotton futures ease further, buying offset by stronger US dollar

Yesterday, the ICE cotton March 2025 contract settled at 66.98 cents per pound (0.453 kg), down by 0.29 cents. This was the second time the contract settled below the 67-cent mark, having previously settled at 66.73 cents on January 16. Other contracts lost between 4 and 27 points.

Crude oil prices closed higher, rebounding from multi-week lows due to concerns over potential new US tariffs. Higher crude oil prices make polyester fibre more expensive, which is a supportive factor for cotton. However, the US dollar rose by 0.6 per cent, making dollar-denominated commodities like cotton more expensive for overseas buyers.

Market volume stood at 36,010 contracts, compared to 35,519 contracts cleared the previous day.

Speculative buying was observed early in the session, but overall, the market remained sideways. Despite some early buying interest, the market lacked clear direction. Uncertainty over potential US tariffs added to market caution and limited upside movement.

In other commodity markets, US soyabeans closed flat, while corn and wheat futures rose after Monday’s losses.

Currently, ICE cotton for March 2025 is trading at 67.10 cents per pound (up 0.12 cents). Cash cotton is trading at 64.48 cents (down 0.29 cents), the May 2024 contract at 68.25 cents per pound (up 0.14 cents), the July 2025 contract at 69.37 cents (up 0.12 cents), the October 2025 contract at 69.31 cents (down 0.25 cents), and the December 2025 contract at 69.20 cents (up 0.12 cents). A few contracts remain at the previous closing level, with no trading noted today.

ALCHEMPro News Desk (KUL)