Yesterday, the ICE cotton March 2025 contract settled at 68.50 cents per pound (0.453 kg), up by 0.31 cents. The prices were close to its recent lows. The March contract was traded 84 points higher than the recent low of 67.66 cents. Other contracts ranged between 23 points higher and 17 points lower.
ICE cotton futures recovered as stronger crude oil boosted cotton’s appeal.
Crude oil price rises increased polyester production costs, favouring cotton.
However, the rising US dollar capped cotton price growth.
The trading volume surged, and ICE deliverable stocks remained unchanged.
The ICAC adjusted global cotton production estimates, while USDA delayed its reports.
Crude oil prices rose over 1 per cent due to higher winter fuel demand from the US and Europe during the current cold weather. This increased the cost of production in the polyester value chain. However, the US dollar gained for the third consecutive day, making cotton costlier for overseas buyers. US treasury yields eased but remained higher due to worries about potential tariffs under the new Trump administration.
The trading volume surged to 37,244 contracts, the highest in nearly a month, while 35,557 contracts were cleared the previous day. ICE deliverable stocks of No. 2 cotton futures remained unchanged at 20,113 bales as of January 8.
The ICAC’s latest monthly report adjusted the global cotton production estimate for 2024-25 to 25.3629 million tons, up from the previous estimate of 25.299 million tons, marking a 5.1 percent year-on-year increase from 24.1230 million tons in 2023-24.
Global ending inventory for 2024-25 is now projected at 18.522 million tons, slightly higher than the previous estimate of 18.470 million tons, but still a 0.22 per cent decrease year-on-year compared to 18.5627 million tons in 2023-24.
The USDA delayed its weekly export sales report to Friday, January 10, while the monthly supply and demand report will be released on Saturday, January 11.
Presently, ICE cotton for March 2025 was traded at 68.54 cents per pound (up 0.04 cents). Cash cotton was traded at 65.73 cents (unchanged), the May 2024 contract at 69.80 cents per pound (up 0.12 cents), the July 2025 contract at 70.83 cents (up 0.08 cents), the October 2025 contract at 69.60 cents (up 0.30 cents), and the December 2025 contract at 69.91 cents (up 0.01 cents). A few contracts remained at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)
