ICE cotton futures eased on Wednesday after reaching a three-week high. A stronger dollar was a negative factor for US cotton, and there was selling pressure following gains in the last trading session. Traders are awaiting the USDA’s weekly export sales report, which is due on Friday.
Yesterday, the ICE cotton May 2025 contract settled at 67.68 cents per pound (0.453 kg), down by 1.14 cents. The contract had hit 69.25 cents in the previous session, the highest level since January 2024.
The decline in US cotton prices was attributed to rising US cotton stocks and broader financial market sentiment. An increase in the dollar makes US cotton less attractive to international buyers.
As of February 18, ICE’s deliverable No. 2 cotton futures inventory stood at 1,732 bales, up from 218 bales on February 14.
Analysts noted that the market was experiencing selling pressure, giving up gains from the previous two sessions. US cotton found support around 67-68 cents, with resistance at 70 cents, which remains significant in the short term.
Traders are awaiting the USDA’s weekly export sales report on February 21 for further insights into cotton demand. The USDA’s last report showed an increase in US cotton export shipments compared to the previous week and the four-week average.
The Chicago Board of Trade (CBOT) corn futures also closed lower on February 19, retreating from a 16-month high due to profit-taking.
Currently, ICE cotton for May 2025 is trading at 67.66 cents per pound (down 0.02 cent). Cash cotton is trading at 65.68 cents (down 1.14 cents), the March 2024 contract at 66.20 cents per pound (down 0.04 cent), the July 2025 contract at 68.67 cents (unchanged), the October 2025 contract at 69.26 cents (down 0.93 cent), and the December 2025 contract at 69.23 cents (down 0.04 cent). A few contracts remained at the same level as the last closing, with no trading activity noted today.
