ICE cotton futures rebounded after experiencing a sharp decline in the early trading session on Monday. This significant increase was driven by bargain hunting and short covering from speculators, with some ICE cotton contracts rising by over 4% during the day. The ICE cotton May 2025 contract settled at 65.99 cents per pound (0.453 kg), reflecting an increase of 2.63 cents or 4.15%.
Market analysts indicated that the sharp upturn was largely due to short covering. Additionally, several countries have expressed interest in negotiating favorable trade terms with the US.
Vietnam, projected to be the largest importer of US cotton in 2025, has demonstrated a positive stance by requesting a delay in tariffs. USDA data reveals that Vietnam has imported over 1.4 million bales of Upland cotton thus far this year.
As of the week ending April 6, 2025, the progress of US cotton planting was recorded at 4%, which is slightly lower than the 5% progress noted during the same period last year and below the five-year average of 6% for this time of year.
According to ICE data from April 4, 2025, the stocks of deliverable No. 2 cotton futures contracts remained stable at 14,488 bales.
In other agricultural markets, soybean and wheat futures experienced gains due to bargain hunting, while corn futures declined, pressured by expectations of increased US planting acreage.
Currently, ICE cotton for May 2025 is trading at 65.15 cents per pound (down 0.84 cents), cash cotton at 63.74 cents (up 2.63 cents), the July 2025 contract at 65.90 cents (down 0.99 cents), the October 2025 contract at 68.24 cents (down 0.45 cents), the December 2025 contract at 67.38 cents (down 0.85 cents), and the March 2026 contract at 68.78 cents per pound (down 0.59 cents). Several contracts remain at the previous closing levels, with no trading activity reported today.
