On Wednesday, ICE cotton futures experienced a notable jump of over one percent, spurred by President Donald Trump’s announcement of a three-month suspension on tariffs. Despite this positive movement, cotton prices remained below the significant psychological barrier of 70 cents per pound, a threshold that tends to dissuade farmers from increasing their cotton planting. The May 2025 ICE cotton contract concluded the day at 66.63 cents per pound, marking a rise of 1.08 cents, or 1.65 percent.
The U.S. dollar saw a decline of 0.7 percent against major safe-haven currencies such as the Japanese yen and the Swiss franc. A weaker dollar can make U.S. cotton more appealing to foreign buyers, as it reduces the price for those purchasing in other currencies.
According to the Intercontinental Exchange (ICE), as of April 8, the deliverable stock for the No. 2 cotton futures contract held steady at 14,488 bales.
Analysts indicate that the cotton market is recalibrating to factor in certain tariff-related losses. The forthcoming USDA export sales report, set to be released on Thursday, will be vital for assessing the global demand for cotton.
Recent data from the U.S. Department of Agriculture (USDA) reveals that Vietnam has emerged as the top importer of U.S. upland cotton for the 2025–26 season, with imports surpassing 1.4 million bales, highlighting strong demand from its textile sector.
Meanwhile, in the broader commodities landscape, CBOT corn futures are approaching a one-month peak, with soybean futures also making significant gains, climbing over two percent during the session. These developments indicate a robust performance in the grain and oilseed markets, potentially influencing overall agricultural sentiment.
At the latest update, the ICE cotton for May 2025 was priced at 67.21 cents per pound (an increase of 0.58 cent), cash cotton was at 64.38 cents (up 1.08 cents), the July 2025 contract was at 67.66 cents (up 0.35 cent), the October 2025 contract was at 69.26 cents (up 0.35 cent), the December 2025 contract at 68.76 cents (up 0.29 cent), and the March 2026 contract was at 69.73 cents per pound (up 0.16 cent). A few contracts showed no change from their previous closing prices, with no trading activity reported for the day.
Overall, this ICE Cotton Futures Update presents a dynamic picture of the market, reflecting the interplay of tariffs, currency fluctuations, and international demand that continue to shape the cotton industry landscape.
