ICE cotton futures experienced a slight decline on Wednesday after reaching a six-week high earlier in the session. The drop was tempered by a weaker U.S. dollar and a lower U.S. cotton planting forecast. Analysts observed that the recent tariff increases announced by President Donald Trump might not favor cotton exports. Nevertheless, strong demand and reduced planting acreage are viewed as positive indicators for the natural fiber market. On Thursday, ICE cotton prices continued to fall, reflecting negative market sentiment following the tariff announcement.
On Wednesday, the ICE cotton May 2025 contract closed at 67.80 cents per pound (0.453 kg), down by 0.45 cents. During the early trading session, it reached an intra-day high of 68.52 cents, the highest level since February 19. The December 2025 contract also decreased, dropping 42 points to settle at 70.39 cents, while other contracts recorded losses ranging from 1 to 47 points.
The weaker U.S. dollar aided cotton demand by making the commodity more affordable for international buyers. In contrast, Chicago grain futures saw a decline, with soybean prices retreating from a one-month high achieved in the previous session.
Trading volume for cotton futures was 74,969 contracts, down from 82,379 contracts cleared the prior day. Data from ICE revealed that as of April 1, the stocks of deliverable No. 2 cotton futures contracts remained stable at 14,488 bales.
The USDA’s planting intentions report projected U.S. cotton acreage for 2025 at 9.8 million acres, representing a 12 percent decrease from 2024.
On April 2, President Trump signed an executive order imposing a 10 percent minimum base tariff on trading partners and higher tariffs on specific nations. Market analysts indicated that while these tariffs may not be favorable, strong cotton demand, increased exports, and reduced acreage continue to provide positive support for the market.
Currently, ICE cotton for May 2025 is trading at 65.72 cents per pound (down 2.08 cents), while cash cotton stands at 65.55 cents (down 0.20 cent). The July 2025 contract is at 66.73 cents (down 1.98 cents), the October 2025 contract is at 70.37 cents (down 0.47 cents), the December 2025 contract is at 68.61 cents (down 1.78 cents), and the March 2026 contract is at 69.76 cents per pound (down 1.81 cents). A few contracts remained unchanged from their previous closing levels, with no trading activity reported today.
As we continue to monitor developments in the cotton market, the ICE Cotton Market Update will provide insights and analysis on these trends affecting investors and traders alike.
