ICE cotton slides on firm dollar & weak demand; exports rise slightly

ICE cotton futures continued to decline for the fifth consecutive trading session on Thursday. Although US cotton export sales were positive, a stronger US dollar, favourable weather in Texas, and subdued demand dragged down cotton prices. Continued rainfall in US cotton-growing regions has improved crop prospects.

The ICE cotton July 2025 contract settled at 65.66 cents per pound (0.453 kg), down 0.36 cent from the previous day. The contract has lost 351 points over the last five trading sessions. The December contract settled at 67.43 cents, also down 0.36 cent on the day. Other contracts ranged from 71 points lower to 1 point higher.

ICE cotton futures fell for a fifth straight session, with the July 2025 contract settling at 65.66 cents per pound.
A stronger US dollar, improved rainfall in West Texas, and subdued demand offset positive export sales.
Trade activity was low due to global holidays.
USDA reported weekly export sales at 108,400 bales, up 4 per cent week-on-week but below the four-week average.

The US dollar index rose on Thursday, making US cotton purchases more expensive for overseas buyers. The stronger dollar outweighed the positive impact of higher export sales during the latest week.

Trading volume was 29,258 contracts—the lowest daily volume since December 31, 2024—compared to 39,571 contracts cleared a day earlier.

Activity was subdued as May 1 was a public holiday in many countries, including China, where markets will reopen on May 6 after the week-long holiday.

Improved rainfall in West Texas over the past week, along with forecasts for more rain next week, has supported soil conditions and encouraged cotton planting. Market analysts noted that the weather in West Texas was nearly perfect last week, prompting growers to begin planting—unlike two weeks ago.

According to the USDA’s export sales report, US cotton export sales for the current marketing year (2024–25) totalled 108,400 bales—up 4 per cent from the previous week but 21 per cent below the four-week average. Export sales for the next marketing year totalled 32,900 bales, indicating some forward bookings despite weaker spot demand.

Although export demand was decent, the combination of favourable weather in US cotton regions and a firmer dollar outweighed the positive effect of the export data.

The near-term focus remains on upcoming weather conditions in Texas and China’s return to trading after the holiday, which could influence future price movements.

At present, ICE cotton for July 2025 is trading at 66.23 cents per pound (up 0.57 cent), cash cotton at 63.91 cents (down 0.36 cent), the May 2025 contract at 65.61 cents (down 0.16 cent), the October 2025 contract at 67.32 cents (down 0.71 cent), the December 2025 contract at 67.93 cents (up 0.50 cent), and the March 2026 contract at 69.09 cents per pound (up 0.44 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

Fibre2Fashion News Desk (KUL)