ICE cotton gains for second session on strong shipments, weak US dollar

ICE cotton futures rose for the second straight session, due to weak US dollar and improved shipments. The May 2025 cotton contract settled at 67.07 cents per pound, gaining 1.39 cents, while the December contract closed 100 points higher at 70.29 cents. Other contracts saw gains between 92 and 112 points.

Weaker dollar made US cotton more attractive to international buyers, providing key support. Certified stock levels stood unchanged at 14,488 bales as of 26 March. USDA’s latest export sales report indicated mixed signals. While upland cotton sales for the 2024-25 season fell 17 per cent from the previous week to 84,400 bales, total shipments rose 12 per cent to 393,400 bales 16 per cent above the four-week average. Analysts say the March export target is nearly met, with April projections likely to be raised.

Traders are awaiting the USDA’s 2025 planting intentions report, due 31 March. The cotton planting area is expected at 10.189 million acres, down from 11.182 million in 2024 a trend that could lift prices ahead. Market sentiment remains upbeat, supported by strong shipment data and expectations of lower US acreage in the upcoming season.