ICE cotton futures rise over 2% as US dollar weakens, exports climb

ICE cotton futures increased over 2 per cent, due to weak US dollar and higher export sales. A declining dollar index, which slipped 0.4 per cent to its lowest level since November 2024, made cotton more attractive for overseas buyers. Stronger demand and rising US cotton exports further lifted sentiment.

The May 2025 contract settled at 65.21 cents per pound, up 1.454 cents (2.42 per cent), marking its third gain in four sessions. However, the contract saw a net loss of 4 points over this period. December futures closed at 68.09 cents, up 1.29 cents, with a net gain of 21 points. Other contracts gained between 95 to 154 points.

The USDA reported that US cotton export sales for the week ending February 27 increased by 241,500 bales, up 45 percent from the previous week, while export shipments rose 25 per cent to 334,000 bales.

Broader agricultural markets also strengthened, with soybean, corn, and wheat futures rising for the second session. High oil prices and easing trade concerns contributed to the positive trend. Currently, ICE cotton for May 2025 is trading at 65.04 cents per pound, while cash cotton stands at 63.21 cents, up 1.54 cents.