ICE cotton continues to gain on rising crude oil, dollar caps

Yesterday, the ICE cotton March 2025 contract settled at 67.40 cents per pound (0.453 kg), up by 0.86 cents. The May contract also gained 12 points, closing at 68.57 cents, while the July contract settled at 69.47 cents, gaining 67 points.

Traders are rolling over positions from the March contract to the May and July contracts ahead of the March delivery on February 24.

The US dollar index strengthened after higher-than-expected inflation data, increasing expectations of higher interest rates. A stronger dollar discouraged cotton buying for overseas buyers.

However, the increase in crude oil prices provided support to US cotton. The entire energy market, including crude oil, recorded gains yesterday.

The total trading volume on February 11 was approximately 110,000 contracts, with the March contract seeing a reduction in open interest of 10,649 contracts, while the May contract added 11,199 contracts. ICE warehouse inventory remained unchanged at 218 bales as of February 11, indicating stable supply conditions.

The USDA maintained its US cotton export forecast at 11 million bales in the February WASDE report. China’s cotton production was revised upward in the USDA report, contributing to higher global ending stocks.

Chicago corn and wheat futures also edged higher as traders monitored crop weather and US trade policy developments.

Cotton prices have decreased by 0.98 cents per pound, or 1.44 per cent, since the beginning of 2025, reflecting market volatility.

Currently, ICE cotton for March 2025 is trading at 67.46 cents per pound (down 0.01 cent). Cash cotton is trading at 65.47 cents (up 0.07 cent), the May 2024 contract at 68.54 cents per pound (down 0.03 cent), the July 2025 contract at 69.48 cents (down 0.01 cent), the October 2025 contract at 69.85 cents (down 0.20 cent), and the December 2025 contract at 69.72 cents (unchanged). A few contracts remain at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)