15 Apr '25
(Fibre2Fashion News Desk (KUL): ICE cotton futures dropped on Monday, influenced by favourable weather conditions in the US, weakness in the grain market, and slow demand prospects during the remaining period of the 2024–25 season. Rain forecasts in the US cotton sowing belt have improved crop prospects.
Insights
ICE cotton fell on April 14, due to favourable US weather, weaker grain markets, and subdued demand expectations for the remainder of 2024–25 season.
July and December contracts dropped over 1.5 cents. Analysts cite improved US crop prospects and tariff uncertainties as key pressures.
Cotton planting in US reached 5 per cent, while Brazil exported over 103,000 tonnes of cotton in first half of April.
Yesterday, the ICE cotton July 2025 contract settled at 65.35 cents per pound (0.453 kg), down 1.66 cents from the previous session. The December 2025 contract declined by 1.57 cents to settle at 66.94 cents. Other contracts saw losses ranging between 127 and 180 points.
Trading volume stood at 68,068 contracts, the lowest in the past 10 sessions. For comparison, Friday’s volume was 96,486 contracts. The recent record-high volume of 171,295 contracts was recorded on April 4, making Monday’s figure appear relatively light, although still historically significant.
ICE certified stock levels as of April 11, 2025, were 14,478 bales, slightly down from 14,488 bales on the previous trading day.
Market analysts noted that the chance of rain in West Texas would benefit soil conditions. Grain futures (wheat, corn, soybeans) on the Chicago Board of Trade also fell, adding pressure to cotton. Cotton prices eased amid cautious buying following new tariff announcements, rain forecasts in the US grain belt, and a recent rally driven by a weaker US dollar.
There is a possibility that cotton demand will weaken during the remaining months of 2024–25 and the first half of the next season. Subdued consumption trends, aggressive harvest expectations, and concerns over US tariffs and the EU trade response remain key market worries.
The USDA Weekly Crop Progress Report released on April 14 showed US cotton planting at 5 per cent complete for the week ending April 13. This compares with 4 per cent the previous week, 8 per cent during the same week last year, and an 8 per cent five-year average.
Brazil's cotton export data showed total exports of 103,879.50 metric tons between April 1-14.
Currently, ICE cotton for May 2025 is trading at 64.48 cents per pound (up 0.39 cent), cash cotton is trading at 61.84 cents (down 1.80 cents), the July 2025 contract at 65.66 cents (up 0.31 cent), the October 2025 contract at 67.26 cents (down 1.45 cents).
The December 2025 contract at 67.26 cents (up 0.32 cent), and the March 2026 contract at 68.42 cents per pound (up 0.33 cent). A few contracts remained at the previous closing level, with no trading noted today. (Source: Fibre2Fashion.com)