Yesterday, the ICE cotton May 2025 contract settled at 65.27 cents per pound (0.453 kg), down 0.81 cent. July cotton futures dropped 0.78 cent, settling at 66.79 cents per pound. The contract touched a low of 66.76 cents, the lowest level since March 11. It has declined by over 2.5 per cent over the week. Cotton futures in active months closed lower every day this week. On Friday, the market recorded its largest one-day fall of 81 points.
ICE cotton futures fell to a two-week low, pressured by a stronger US dollar, weak export sales, and negative grain market sentiment.
The May 2025 contract dropped by 0.81 cent to 65.27 cents per pound.
Weekly export sales declined 63 per cent, dampening market mood.
Cotton futures declined daily this week, with Friday marking the steepest one-day fall.
The US dollar strengthened further on Friday, marking its first weekly gain in March. A stronger dollar makes cotton purchases more expensive for overseas buyers.
Trading volume on March 21 was 30,053 contracts, the lightest daily volume of 2025 so far, compared to 31,926 contracts cleared on March 20. ICE deliverable No. 2 cotton futures contract stocks remained steady at 14,488 bales as of March 20.
Market analysts noted that weaker-than-expected export sales added selling pressure. US cotton export sales for the current marketing year totalled 101,100 bales for the week ending March 13, down 63 per cent from the prior week and 59 per cent below the four-week average.
US stocks, including the S&P and Dow Jones indices, rose slightly on March 21, recovering from earlier losses.
ICE cotton for May 2025 settled at 65.27 cents per pound (down 0.81 cent), cash cotton at 62.77 cents (down 0.81 cent), the July 2025 contract at 66.79 cents (down 0.78 cent), the October 2025 contract at 68.75 cents (down 0.48 cent), the December 2025 contract at 68.66 cents (down 0.70 cent), and the March 2026 contract at 79.85 cents per pound (down 0.65 cent).
Fibre2Fashion News Desk (KUL)