ICE cotton futures continued to ease due to selling pressure ahead of the USDA’s export sales report, which is due on Friday. However, the export sales report is expected to be positive. A weaker US dollar also failed to support sentiment in cotton futures.
Yesterday, the ICE cotton May 2025 contract settled at 67.47 cents per pound (0.453 kg), down by 0.21 cents. It closed at its lowest level in the last eight sessions, having lost 135 points over the last two trading sessions. The December contract settled at 69.16 cents, down 11 points. Other contracts declined between 3 and 27 points, except for October, which gained 10 points.
Trading volume stood at 53,347 contracts, the lowest in three weeks, compared to 78,208 contracts cleared the previous day. ICE's deliverable No. 2 cotton futures inventory remained stable at 1,732 bales as of February 19.
According to analysts, the market experienced resistance and consolidation, potentially stabilising around 67 cents.
The USDA export sales report, due on Friday, is expected to be positive, though tariff concerns continue to influence market behaviour. Brazil set a record in January, exporting 415,600 tons of cotton—a 66 per cent year-on-year increase—with 1.63 million tons exported in the first six months of 2024-25.
US stocks sold off due to tariff concerns and Walmart's downbeat earnings forecast, dampening investor risk appetite.
Currently, ICE cotton for May 2025 is trading at 67.54 cents per pound (up 0.07 cents). Cash cotton is trading at 65.47 cents (down 0.21 cents), the March 2024 contract at 66.14 cents per pound (up 0.17 cents), the July 2025 contract at 68.54 cents (up 0.07 cents), the October 2025 contract at 69.36 cents (up 0.10 cents), and the December 2025 contract at 69.24 cents (up 0.08 cents). A few contracts remained at the level of the last closing, with no trading noted today.
