Yesterday, the ICE cotton March 2025 contract settled at 67.40 cents per pound (0.453 kg), up by 0.86 cents. The May contract also gained 74 points, closing at 68.45 cents.
The US dollar index fell after signals from the Federal Reserve indicated no rush to cut interest rates. A weaker dollar makes cotton purchases more affordable for overseas buyers. An increase in crude oil provided support to the natural fibre, as stronger crude oil makes polyester, a man-made alternative to cotton, more expensive.
The trading volume was the second highest ever, at 1,109,723 contracts. Contracts cleared yesterday totalled 95,979. The three-session average volume was 101,064 contracts.
The USDA February supply and demand report kept the US cotton production estimate unchanged at 14.4 million bales. US ending stocks increased by 100,000 bales to 4.9 million bales. The steady US export forecast of 11.0 million bales was a positive factor despite global uncertainties.
Presently, ICE cotton for March 2025 is trading at 67.48 cents per pound (up 0.08 cent). Cash cotton is trading at 65.40 cents (up 1.11 cents), the May 2024 contract is at 68.50 cents per pound (up 0.05 cent), the July 2025 contract is at 69.43 cents (down 0.04 cent), the October 2025 contract is at 70.05 cents (up 0.60 cent), and the December 2025 contract is at 69.78 cents (down 0.11 cent). A few contracts remained at the last closing level, with no trading noted today.
ALCHEMPro News Desk (KUL)
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