ICE cotton futures have shown continued improvement, marking a second consecutive day of growth. The softer U.S. dollar has bolstered cotton and other U.S. agricultural commodities by making them more affordable for international buyers. However, favorable weather forecasts in key U.S. cotton-growing regions, along with ongoing uncertainty regarding trade policies and tariffs, have tempered the gains in cotton futures.
The ICE cotton contract for July 2025 closed at 66.37 cents per pound (0.453 kg), an increase of 0.25 cents from the previous day. Other contracts in the market also reported upward movement, with ICE cotton continuing to trade positively today.
The weaker U.S. dollar has enhanced the competitiveness of American agricultural exports on a global scale. Nevertheless, market sentiment remains cautious due to the persistent uncertainty surrounding trade policies and tariffs.
According to ICE data, the deliverable cotton inventory stood at 14,478 bales as of April 15, remaining unchanged from the previous day.
Market analysts noted that anticipated rainfall in Texas, combined with ongoing tariff concerns, presents bearish factors for cotton in the near term. Traders are now turning their attention to the upcoming USDA weekly export sales report for further insights into U.S. cotton demand.
Meanwhile, U.S. stock markets experienced a sharp decline, driven by a drop in Nvidia shares and comments from Federal Reserve Chair Jerome Powell regarding slowing economic growth, which negatively impacted overall market sentiment.
In Brazil, the IBGE has reported that cotton planting for the 2025 season is projected to reach 2.12 million hectares, reflecting a 4.4% increase from last month. The estimated cotton output in Brazil has been revised to 9.07 million tons, slightly above previous estimates and last year’s production figures.
Currently, ICE cotton for May 2025 is trading at 66.16 cents per pound (up 0.37 cents), while cash cotton is priced at 63.54 cents (up 0.71 cents). The July 2025 contract is at 66.83 cents (up 0.46 cents), the October 2025 contract at 68.26 cents (up 0.26 cents), the December 2025 contract at 68.20 cents (up 0.29 cents), and the March 2026 contract at 69.32 cents per pound (up 0.29 cents). A few contracts remained stable at the previous closing levels, with no trading activity reported today.
