ICE cotton futures eased on Tuesday due to weakness in the grain market and cautious buying ahead of the USDA planting intentions report. However, several cotton contracts recovered during the early session on Wednesday.
Yesterday, the ICE cotton May 2025 contract settled at 65.14 cents per pound (0.453 kg), down 0.28 cent. The contract gave up its gains from Monday’s trading and has lost 223 points over the last seven sessions. The December contract settled at 68.80 cents, down 13 points. It had gained 27 points in the previous session. The most recent session marked the sixth lower close in the last seven sessions for active contracts.
Total trading volume reached 39,347 contracts, compared to 35,672 contracts cleared the previous day. As of March 24, ICE deliverable No. 2 cotton futures stocks remained unchanged at 14,488 bales.
Chicago Board of Trade (CBOT) wheat futures declined due to expectations of increasing Black Sea supplies. CBOT soybean and corn futures also closed lower amid tariff concerns.
Market analysts said that weakness in soybean, corn, and wheat futures affected the cotton market. They believe cotton prices will remain range-bound until the report is released next Monday.
The US Department of Agriculture (USDA) will release its grain inventory and planting intentions report on March 31. The report will estimate the US planting area for the 2025 season, which could significantly impact cotton prices.
The market has been consolidating within a narrow range, awaiting fresh direction from the upcoming USDA report. Traders are closely monitoring potential shifts in US cotton acreage, which could influence price trends for the rest of the year.
Currently, ICE cotton for May 2025 is trading at 65.23 cents per pound (up 0.09 cent), cash cotton at 62.64 cents (down 0.28 cent), the July 2025 contract at 66.85 cents (up 0.10 cent), the October 2025 contract at 68.83 cents (down 0.04 cent), the December 2025 contract at 68.85 cents (up 0.05 cent), and the March 2026 contract at 70.06 cents per pound (up 0.04 cent). A few contracts remained at the level of the last closing, with no trading noted today.
