ICE cotton remains flat amid weaker dollar, higher crude oil prices

Yesterday, the ICE cotton May 2025 contract settled at 66.00 cents per pound (0.453 kg) with no change, while the July contract fell slightly by 0.02 cents to 67.19 cents per pound. Other contracts recorded gains between 4 and 19 points.

The US dollar index declined by 0.5 per cent, reaching a near five-month low, making US cotton more attractive to international buyers. Crude oil also increased by 1 per cent, boosting demand for cotton as polyester fibre prices rose.

Trading volume was light at 38,397 contracts, the lowest in the last eight sessions, while cleared contracts totalled 57,508.

The USDA’s report forecast a higher global cotton export volume, increasing by 200,000 bales to 42.71 million bales, reflecting strong international demand. World cotton production and consumption were also revised upward.

Market analysts stated that expectations of reduced US cotton acreage, a weaker dollar, and drought conditions in key growing regions provided market support. Stronger energy prices and a weaker dollar contributed to the demand outlook for cotton.

Chicago Board of Trade (CBOT) soybean prices stabilised after two days of losses, while corn prices remained at a one-week high.

Despite supportive USDA adjustments and a weaker dollar, the high level of global ending stocks kept cotton prices steady. Traders remain focused on weather conditions, energy prices, and currency movements for further market direction. Overall, the market balanced bullish factors such as lower ending stocks and higher exports against bearish influences like increased production and stock levels.

Currently, ICE cotton for May 2025 is trading at 66.42 cents per pound (up 0.42 cent), cash cotton at 64.00 cents (unchanged), the July 2025 contract at 67.59 cents (up 0.40 cent), the October 2025 contract at 69.20 cents (up 0.09 cent), the December 2025 contract at 69.19 cents (up 0.34 cents), and the March 2026 contract at 70.25 cents per pound (up 0.32 cent). A few contracts remained at the previous closing level, with no trading noted today.

ALCHEMPro News Desk (KUL)