Yesterday, the ICE cotton March 2025 contract settled at 66.94 cents per pound (0.453 kg), up by 0.90 cents. The contract had seen a sharp decline on Monday but recovered later. All ICE contracts, including May 2025 and December 2025, gained on the positive mood of the market.
The US dollar index eased yesterday after a steep rise on Monday. A weaker US dollar makes cotton purchases more affordable for overseas buyers. However, weakness in crude oil capped gains in US cotton prices.
The tariff war between the US and its trading partners, Mexico and Canada, raised concerns about slower demand for US cotton. However, the US has paused tariff plans against these trading partners. In contrast, there has been no retreat with China, as the US has announced a 10 per cent duty on Chinese imports.
CBOT corn futures edged higher as they followed a similar trend. The increase in gains also improved sentiment in the cotton trade.
Presently, ICE cotton for March 2025 was traded at 67.04 cents per pound (up 0.10 cent). Cash cotton was traded at 64.44 cents (up 0.90 cent), the May 2024 contract at 68.18 cents per pound (up 0.13 cent), the July 2025 contract at 69.25 cents (up 0.15 cent), the October 2025 contract at 69.47 cents (down 0.79 cent), and the December 2025 contract at 69.53 cents (up 0.16 cent). A few contracts remained at the level of the last closing, with no trading noted today.
ALCHEMPro News Desk (KUL)
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