ICE cotton futures rise on strong shipments, weak US dollar

Yesterday, the ICE cotton May 2025 contract settled at 67.07 cents per pound (0.453 kg), up 1.39 cents. The December contract also settled higher at 70.29 cents, gaining 100 points. Other contracts posted gains between 92 and 112 points.

The weaker US dollar provided additional support for dollar-denominated commodities like cotton. ICE certified stock levels remained unchanged at 14,488 bales as of 26 March.

The USDA weekly export sales report provided mixed signals for the market. Upland cotton sales totalled 84,400 bales in the 2024–25 marketing year. This marked a 17 per cent decline from the previous week and a 57 per cent drop compared to the four-week average. Total US cotton export shipments for the week reached 393,400 bales, up 12 per cent from the previous week and 16 per cent higher than the four-week average.

According to market analysts, export sales and shipment data were generally positive. The March sales target has largely been met, and the sales forecast for April is likely to be revised upward. Traders will keep a close watch on upcoming USDA data for further price direction.

The US Department of Agriculture (USDA) is set to release its 2025 planting intentions report on 31 March. Analysts estimate the 2025 US cotton planting area at 10.189 million acres, which is lower than the 11.182 million acres recorded in 2024.

Market participants are closely monitoring this report, as lower acreage could support cotton prices in the coming months.

Overall, market sentiment remains positive due to strong shipments and expectations of reduced US cotton acreage.

Currently, ICE cotton for May 2025 is trading at 66.72 cents per pound (down 0.35 cent). Cash cotton is trading at 64.57 cents (up 1.39 cents), the July 2025 contract at 67.98 cents (down 0.36 cent), the October 2025 contract at 70.19 cents (up 1.03 cents), the December 2025 contract at 69.92 cents (down 0.37 cent), and the March 2026 contract at 71.04 cents per pound (down 0.40 cent). A few contracts remain at the level of the last closing, with no trading noted today.

ALCHEMPro News Desk (KUL)