ICE cotton futures experienced a gain yesterday as U.S. cotton received support from improved export prospects, rising crude oil prices, and a recovery in stock markets. The increase in crude oil prices raises the cost of polyester fiber, a synthetic alternative to cotton, making cotton more competitive. On Wednesday, the U.S. dollar index remained stable, contributing mixed signals for the cotton trade.
The ICE cotton May 2025 contract settled at 66.98 cents per pound (0.453 kg), up 0.98 cents. Over the past six trading sessions, this contract has seen a net gain of 374 points. The July contract closed at 68.16 cents, also up 0.97 cents, with a net gain of 364 points over the same period. Other contracts experienced gains ranging from 22 to 80 points.
The stability of the U.S. dollar index presented mixed implications for cotton trade competitiveness. However, oil prices increased by 2% following U.S. data indicating that commercial crude oil inventories rose less than anticipated while refined product stocks saw a decline. The higher prices for crude oil bolster cotton’s position by making polyester more costly.
Total trade volume reached 44,777 contracts, with 38,397 contracts cleared the previous day. Certified cotton stocks remain at 14,488 bales, with no bales pending review.
Factors such as the potential for increased U.S. cotton export sales, speculative short covering, and a positive shift in stock market momentum are supporting cotton prices. The near-term price outlook is considered “sideways to higher,” suggesting that prices may have already hit their seasonal low.
Traders are now awaiting the U.S. Department of Agriculture’s weekly export sales report for additional insights into cotton demand.
Currently, ICE cotton for May 2025 is trading at 67.12 cents per pound (up 0.14 cents). Cash cotton is priced at 64.98 cents (up 0.98 cents), with the July 2025 contract at 68.24 cents (up 0.08 cents), the October 2025 contract at 69.92 cents (up 0.72 cents), the December 2025 contract at 69.55 cents (down 0.10 cents), and the March 2026 contract at 70.74 cents per pound (up 0.10 cents). A few contracts have remained at previous closing levels, with no trading activity recorded today.
