ICE cotton futures gained yesterday as US cotton found support from stronger export prospects, rising crude oil prices, and a recovery in stock markets. Costlier crude oil makes polyester fibre, a man-made alternative to cotton fibre, more expensive. The US dollar index remained stable on Wednesday.
Yesterday, the ICE cotton May 2025 contract settled at 66.98 cents per pound (0.453 kg), up 0.98 cent. The contract has recorded a net gain of 374 points over the last six trading sessions. The July contract settled at 68.16 cents, up 0.97 cent, with a six-session net gain of 364 points. Other contracts recorded gains ranging from 22 to 80 points.
The US dollar index remained stable, providing mixed signals for cotton trade competitiveness. However, oil prices rose 2 per cent after US data showed that commercial crude oil inventories increased less than expected, while refined product stocks declined. Higher crude oil prices make polyester more expensive, providing support to cotton.
Total trade volume reached 44,777 contracts, with 38,397 contracts cleared the previous day. Certified cotton stocks remained at 14,488 bales, with zero bales awaiting review.
The prospect of higher US cotton export sales, speculative short covering, and initial positive momentum in the stock market are supporting cotton prices. The near-term price outlook is "sideways to higher," as prices may have already reached their seasonal low.
Traders awaited the US Department of Agriculture’s weekly export sales report for further insights into cotton demand.
Currently, ICE cotton for May 2025 is trading at 67.12 cents per pound (up 0.14 cent). Cash cotton is trading at 64.98 cents (up 0.98 cent), the July 2025 contract at 68.24 cents (up 0.08 cent), the October 2025 contract at 69.92 cents (up 0.72 cent), the December 2025 contract at 69.55 cents (down 0.10 cent), and the March 2026 contract at 70.74 cents per pound (up 0.10 cent). A few contracts remained at the previous closing levels, with no trading recorded today.
