ICE cotton slips further as US export sales decline sharply

Yesterday, the ICE cotton March 2025 contract settled at 71.10 cents per pound (0.453 kg), down by 0.015 cents. The commodity eased by around 0.2 per cent on Thursday.

The USDA's weekly export sales report showed net export sales of upland cotton for 2024-25 at 170,700 bales, a sharp 47 per cent decline from the previous week and 33 per cent below the four-week average. Market experts noted that export sales and shipments were consistent with this year's underwhelming performance, though weaker compared to the first two weeks of the year.

The dollar's weakness was a positive factor, as it makes cotton purchases cheaper for overseas buyers. Additionally, the rise in crude oil prices boosted sentiment in the cotton futures market. An increase in crude oil costs makes the polyester value chain more expensive. Polyester, a man-made fibre, is an alternative to cotton.

Gains in the broader agricultural market and the weaker dollar helped limit losses in the cotton market despite disappointing export data.

Currently, ICE cotton for March 2025 is trading at 70.78 cents per pound (down 0.32 cents). Cash cotton is trading at 67.60 cents (up 0.35 cents), the December 2024 contract at 72.39 cents per pound (down 0.21 cents), the May 2025 contract at 72.03 cents (down 0.35 cents), the July 2025 contract at 73.03 cents (down 0.31 cents), and the October 2025 contract at 72.41 cents (down 0.14 cents). A few contracts remain unchanged from the last closing, with no trading noted today.

ALCHEMPro News Desk (KUL)