18 Apr '25
(Fibre2Fashion News Desk (KUL): ICE cotton futures rose yesterday following a strong US export sales report and dry weather conditions in key producing regions.
US crude oil prices also climbed over 3 per cent, supporting cotton prices as the cost of producing polyester—an alternative man-made fibre—increased. ICE cotton reached its highest level in the current session.
Insights
ICE cotton futures rose on strong US export sales and dry weather forecasts in key producing areas.
The July 2025 contract hit 67.13 cents per pound, the highest since 10 April. Crude oil gains also supported cotton prices by raising polyester costs.
Market sentiment was further boosted by easing trade tensions and limited rainfall forecasts impacting both cotton and wheat markets.
The ICE cotton July 2025 contract settled at 67.13 cents per pound (0.453 kg), up 0.76 cent from yesterday. The contract hit a session high of 67.20 cents, the highest since April 10. The December contract settled at 68.44 cents, up 0.53 cent on the day. Other contracts also posted gains. Weekly price movements ranged from a 43-point rise to an 8-point decline.
Total trading volume was 33,530 contracts, compared to 39,126 contracts cleared the previous day.
The USDA export sales report showed 202,000 bales sold for the current marketing year, up 76 per cent from the prior week and 88 per cent above the 4-week average. Export sales for the next marketing year totalled 65,900 bales.
Market analysts noted that strong export sales and forecasts of dry weather in key regions supported the market. Export activity typically slows during this time of year.
US crude oil futures rose over 3 per cent, driven by easing trade tensions and concerns over supply disruptions from Iran. Higher crude prices make polyester—a cotton substitute—more expensive, boosting cotton demand.
CBOT wheat futures gained due to poor rainfall forecasts and rising global demand, while US equities were mixed ahead of the Good Friday market closure.
Currently, ICE cotton for May 2025 was trading at 66.32 cents per pound (up 0.53 cent), cash cotton at 65.38 cents (up 1.84 cents), the July 2025 contract at 67.13 cents (up 0.76 cent), the October 2025 contract at 68.80 cents (up 0.54 cent).
The December 2025 contract at 68.44 cents (up 0.53 cent), and the March 2026 contract at 69.55 cents per pound (up 0.52 cent). A few contracts remained unchanged from the last close, with no trading activity noted. (Source: Fibre2Fashion.com)