Yesterday, the ICE cotton May 2025 contract settled at 66.47 cents per pound (0.453 kg), down 0.51 cent. The contract has lost 90 points over the past two sessions. July cotton futures settled at 67.88 cents per pound, down 0.36 cent. The market had gained to near a four-week high on Monday but failed to sustain momentum, closing lower for the second consecutive day.
The US dollar hovered near a five-month low, making cotton less expensive for overseas buyers. Global crude oil prices slipped about one per cent, as sanctions on Russian fuel exports may be eased. Lower crude oil prices reduce the cost of polyester, a key substitute for cotton.
ICE cotton futures declined for a second consecutive day as bearish sentiment persisted, despite a weaker dollar and rising crude oil prices.
Technical resistance prevented gains, with short positions remaining dominant.
Trading volumes were light, and analysts noted weak momentum.
S&P Global revised its 2025 US cotton acreage estimate downward.
Trading volume reached 36,431 contracts, slightly lower than the 37,859 contracts cleared the previous day, with both days on the lighter end of recent trading volumes. ICE data showed that as of March 17, deliverable No. 2 cotton futures contract stocks remained unchanged at 14,488 bales.
Analysts noted the market’s inability to break through key technical levels, a trend observed over the past six months. They pointed out that the volume during rallies is significantly lower than the volume during declines, which is not a bullish signal for any market. Due to the large number of carry trades, a certain amount of short rollover occurs, meaning spreads account for a larger proportion of the volume.
S&P Global Commodity Insights revised its estimate for the US cotton crop area in 2025 to 10.2 million acres, down 250,000 acres from its January estimate and approximately 1 million acres less than in 2024.
Currently, ICE cotton for May 2025 is trading at 66.36 cents per pound (down 0.11 cent). Cash cotton is trading at 63.97 cents (down 0.51 cent), the July 2025 contract at 67.74 cents (down 0.14 cent), the October 2025 contract at 69.54 cents (down 0.27 cent), the December 2025 contract at 69.38 cents (down 0.18 cent), and the March 2026 contract at 70.53 cents per pound (down 0.13 cent). A few contracts remain at the last closing level, with no trading noted today.
Fibre2Fashion News Desk (KUL)
