Yesterday, the ICE cotton May 2025 contract settled at 66.00 cents per pound (0.453 kg), down by 0.07 cents. However, other contracts recorded gains ranging from 6 to 49 points.
The dollar index gained on Monday, reducing the competitiveness of cotton. A stronger dollar made cotton purchases more expensive for overseas buyers. Meanwhile, crude oil prices slipped, which was also a negative factor for ICE cotton, as cheaper crude oil reduces the cost of polyester fibre production.
The trading volume stood at 30,193 contracts, with an open interest of 138,280 contracts. Cleared contracts totalled 45,169 last Friday.
The market is awaiting the World Agricultural Supply and Demand Estimate (WASDE) report for clearer insights regarding global demand and supply. The report will be released on Tuesday, and the market may take direction from this crucial release.
Traders were concerned about potential disruptions due to tariff measures taken by US President Donald Trump. He dismissed market concerns about a recession, insisting that this is a transitional period. Ultimately, he claimed that the US economy would benefit from the new economic policies of the Trump administration.
Currently, ICE cotton for May 2025 is trading at 65.73 cents per pound (down 0.27 cents), cash cotton at 64.00 cents (down 1.54 cents), the July 2025 contract at 66.98 cents (down 0.23 cents), the October 2025 contract at 69.11 cents (unchanged), the December 2025 contract at 68.50 cents (down 0.16 cents), and the March 2025 contract at 69.59 cents per pound (down 0.17 cents). A few contracts remained at the same level as the last closing, with no trading noted today.
ALCHEMPro News Desk (KUL)
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