ICE cotton rises as tariff worries ease, still below 70 cents mark

On Wednesday, the ICE cotton May 2025 contract settled at 66.63 cents per pound (0.453 kg), up 1.08 cents or 1.65 per cent.

The US dollar fell by 0.7 per cent against traditional safe-haven currencies such as the Japanese yen and Swiss franc. A weaker dollar supports US cotton by making it more affordable for overseas buyers.

The Intercontinental Exchange (ICE) reported that, as of April 8, the deliverable stock for the No. 2 cotton futures contract remained unchanged at 14,488 bales.

According to market analysts, the cotton market is attempting to price in some tariff-related losses. The USDA export sales report, due on Thursday, will be important for assessing global demand.

According to data from the US Department of Agriculture (USDA), Vietnam has emerged as the largest importer of US upland cotton so far in the 2025–26 season. Vietnam has already imported more than 1.4 million bales, reflecting strong demand from the textile industry.

In the broader commodity market, CBOT corn futures are trading close to a one-month high. Soybean futures also posted a significant rise, gaining over two per cent during the session. These moves indicate strength in the grain and oilseed markets, which may influence broader agricultural sentiment.

As of the latest update, ICE cotton for May 2025 was trading at 67.21 cents per pound (up 0.58 cent), cash cotton at 64.38 cents (up 1.08 cents), the July 2025 contract at 67.66 cents (up 0.35 cent), the October 2025 contract at 69.26 cents (up 0.35 cent), the December 2025 contract at 68.76 cents (up 0.29 cent), and the March 2026 contract at 69.73 cents per pound (up 0.16 cent). A few contracts remained at the level of the last closing, with no trading activity noted today.

ALCHEMPro News Desk (KUL)