Yesterday, the ICE cotton March 2025 contract settled at 67.66 cents per pound (0.453 kg), down by 0.91 cents. The contract declined 1.8 per cent during the week, marking a weak start to 2025. It touched a low of 67.63 cents, the lowest level since 20 December 2024.
ICE cotton prices dropped over 1 per cent on January 3, 2025, as weaker export sales, falling grain markets, and a strong US dollar pressured the market.
The March 2025 contract settled at 67.66 cents per pound, marking a 1.8 per cent weekly decline.
USDA data revealed upland cotton export sales fell 54 per cent, with China’s reduced purchases further weighing on sentiment.
A total of 32,478 contracts were traded on January 3, compared to 34,310 contracts cleared on January 2.
The decline in the grain market, including sharp drops in corn, soybeans, and wheat, negatively impacted cotton. According to market analysts, cotton is facing heavy selling pressure and remains in a bearish trend due to weak investor confidence.
The USDA’s export sales report for the week ending December 26 showed upland cotton export sales at 128,900 bales, down 54 per cent from the previous week and 35 per cent below the four-week average. Export shipments totalled 115,800 bales, down 18 per cent from the previous week and 18 per cent below the four-week average. Of these shipments, only 24,900 bales were exported to mainland China, reflecting significantly lower year-on-year purchases by China. China’s reduced presence as a cotton buyer continues to weigh on market sentiment.
The US dollar posted its strongest weekly performance in a month, bolstered by expectations of continued US economic outperformance and high interest rates. A stronger dollar, supported by a solid labour market and high inflation, makes US cotton more expensive for overseas buyers holding other currencies. Rising US Treasury yields further dampened demand for US cotton and other commodities.
On Friday, ICE cotton for March 2025 settled at 67.66 cents per pound (down 0.91 cent). Cash cotton settled at 65.16 cents (down 0.91 cent), the May 2024 contract at 68.81 cents per pound (down 0.92 cent), the July 2025 contract at 69.89 cents (down 0.86 cent), the October 2025 contract at 68.48 cents (down 0.73 cent), and the December 2025 contract at 69.06 cents (down 0.68 cent).
Fibre2Fashion News Desk (KUL)