01 May '25
(Fibre2Fashion News Desk (KUL): ICE cotton futures declined for the fourth consecutive trading session on Wednesday. Weaker US economic data dampened market sentiment. The US GDP contracted ahead of potential reciprocal tariffs, and falling crude oil prices added further pressure on the natural fibre.
Insights
ICE cotton futures fell for the fourth straight session, weighed down by weaker US economic data and falling crude oil prices.
The July 2025 contract dropped to 66.02 cents per pound, down 0.47 cent, with broader losses seen across contracts.
US GDP shrank by 0.3 per cent in Q1, sparking stock market volatility and dampening cotton sentiment.
Cheaper crude also made polyester more competitive.
The ICE cotton July 2025 contract settled at 66.02 cents per pound (0.453 kg), down 0.47 cent from the previous day. The contract has lost 315 points over the last four sessions. The December contract settled at 67.79 cents, down 0.48 cent on the day. Other contracts posted changes ranging from 58 points lower to 1 point higher.
NYMEX crude oil also declined after Saudi Arabia announced plans to increase production. Crude prices have recorded their biggest monthly fall in nearly three and a half years. The decline in crude oil makes polyester—a substitute for cotton—even cheaper, further weighing on cotton prices.
Trading volume for the session totalled 39,571 contracts, while cleared contracts from the previous day stood at 47,283. As of April 29, the ICE deliverable No. 2 cotton futures contract inventory remained unchanged at 14,478 bales.
According to the Commerce Department, US GDP contracted by 0.3 per cent year-on-year in the first quarter of this year. Economists had expected a 0.3 per cent increase, compared to the 2.4 per cent growth recorded in the fourth quarter of last year.
The contraction was partly attributed to a surge in imports by businesses attempting to avoid higher costs due to tariffs.
The GDP decline contributed to a 700-point intraday fall in the stock market, which also pressured cotton prices. Despite the intraday losses, the Dow Jones Industrial Average and the S&P 500 rebounded late on Wednesday and closed higher.
Currently, ICE cotton for July 2025 is trading at 65.73 cents per pound (down 0.29 cent), cash cotton at 64.27 cents (down 0.47 cent); the May 2025 contract at 65.77 cents (down 0.58 cent); the October 2025 contract at 68.03 cents (down 0.34 cent).
The December 2025 contract at 67.53 cents (down 0.26 cent); and the March 2026 contract at 68.75 cents per pound (down 0.27 cent). A few contracts remained at their previous closing levels, with no trading activity recorded today. (Source: Fibre2Fashion.com)