ICE cotton futures rebound on bargain buying and short covering

Yesterday, the ICE cotton May 2025 contract settled at 65.99 cents per pound (0.453 kg), up 2.63 cents or 4.15 per cent.

Market analysts said that the sharp rise was attributed to short covering. A few countries have shown interest in negotiating better trade terms with the US.

Vietnam, the largest importer of US cotton in 2025, has shown positive intent by requesting a delay in tariffs. According to USDA data, Vietnam has imported more than 1.4 million bales of Upland cotton so far this year.

As of the week ending April 6, 2025, US cotton planting progress stood at 4 per cent. This is lower than the 5 per cent progress recorded during the same period last year. It is also below the five-year average of 6 per cent for this time of year.

According to ICE data as of April 4, 2025, deliverable No. 2 cotton futures contract stocks remained unchanged at 14,488 bales.

In other agricultural markets, soybean and wheat futures rose due to bargain hunting. Corn futures, however, declined, weighed down by expectations of increased US planting acreage.

Currently, ICE cotton for May 2025 is trading at 65.15 cents per pound (down 0.84 cent), cash cotton at 63.74 cents (up 2.63 cents), the July 2025 contract at 65.90 cents (down 0.99 cent), the October 2025 contract at 68.24 cents (down 0.45 cent), the December 2025 contract at 67.38 cents (down 0.85 cent), and the March 2026 contract at 68.78 cents per pound (down 0.59 cent). A few contracts remain at the previous closing level, with no trading noted today.

ALCHEMPro News Desk (KUL)