Yesterday, the ICE cotton May 2025 contract settled at 66.08 cents per pound (0.453 kg), down 0.27 cent, bringing its total loss over the past four sessions to 129 points. The July 2025 contract also declined by 0.27 cent, closing at 67.57 cents per pound—its lowest level in over a week. Meanwhile, the December contract ended the session at 69.36 cents, down 0.16 cent from the previous day.
The US dollar strengthened on Thursday following a Federal Reserve announcement indicating it was not in a hurry to cut interest rates. The central bank expressed concerns about uncertainty surrounding US tariff policy. A stronger dollar makes cotton purchases more expensive for overseas buyers.
Total trading volume for the session was 31,926 contracts, the second lowest in 2025. The previous day, 34,478 contracts were cleared. ICE data showed that as of March 19, deliverable stocks for the ICE No. 2 cotton futures contract remained unchanged at 14,488 bales.
Market analysts noted that weak export sales had a significant impact in a declining market. The US Department of Agriculture (USDA) released an export sales report for the week ending March 13. US cotton export sales for the current marketing year totalled 101,100 bales, down 63 per cent from the previous week and 59 per cent below the average of the previous four weeks. Export sales for the next marketing year were reported at 57,900 bales.
The market was receiving little external support, as all grain markets were largely down, and the US dollar remained strong. In other agricultural markets, Chicago Board of Trade (CBOT) corn futures rose to a one-week high, supported by strong export demand and tight global supplies. CBOT soft red winter wheat futures declined for the third consecutive session, affected by weak US weekly export sales data and a strong dollar, which raised concerns about US wheat exports. CBOT soybean futures fluctuated under harvest pressure from a bumper crop in Brazil but managed to close higher.
US stock markets closed slightly lower, swinging between gains and losses as investors assessed the latest economic data and the Federal Reserve's policy statement amid tariff concerns.
Currently, ICE cotton for May 2025 is trading at 65.82 cents per pound (down 0.26 cent), cash cotton at 63.58 cents (down 0.27 cent), the July 2025 contract at 68.27 cents (down 0.29 cent), the October 2025 contract at 69.23 cents (down 0.20 cent), the December 2025 contract at 69.03 cents (down 0.33 cents) and the March 2026 contract at 70.16 cents per pound (down 0.34 cent). A few contracts remained unchanged from the previous close, with no trading noted today.
ALCHEMPro News Desk (KUL)
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