ICE cotton futures closed slightly lower on Tuesday, as a stronger US dollar made US cotton purchases more expensive, discouraging buyers from entering new deals. However, the losses were limited by the latest US cotton planting report, which indicated a planting area for the natural fibre that was lower than expected.
Yesterday, the ICE cotton May 2025 contract settled at 66.83 cents per pound (0.453 kg), down 0.07 cent. During the trading session, it had dropped over one per cent but recovered partially.
The US dollar gained against other currencies, making dollar-denominated cotton more expensive for international buyers. The stronger dollar added further pressure on the natural fibre.
The USDA reported that the total cotton planting area in the US for 2025 is expected to be 9.867 million acres, lower than the market forecast of 10.189 million acres and well below the 11.182 million acres planted in 2024.
Cotton futures were initially dragged down by weak sentiment in the CBOT grain market. However, once the USDA’s planting report was released, grains rebounded, providing some support to cotton prices.
Traders remained cautious due to upcoming tariff announcements expected later in the week, leading to negative sentiment in most markets.
As of March 28, the number of deliverable No. 2 cotton futures contract stocks on the ICE remained unchanged at 14,488 bales.
Currently, ICE cotton for May 2025 is trading at 66.68 cents per pound (down 0.15 cent), cash cotton at 64.33 cents (down 0.07 cent), the July 2025 contract at 67.85 cents (down 0.14 cent), the October 2025 contract at 69.84 cents (down 0.11 cent), the December 2025 contract at 69.76 cents (down 0.16 cent), and the March 2026 contract at 70.94 cents per pound (down 0.11 cent). A few contracts remained at the level of the last closing, with no trading noted today.
