ICE cotton futures rose to a three-week high yesterday as supply concerns supported the natural fibre. Severe weather conditions in the US cotton-growing regions have delayed harvesting. US cotton remains near a two-month low, while a weaker dollar has made cotton purchases more affordable for overseas buyers.
Yesterday, the ICE cotton May 2025 contract settled at 68.82 cents per pound (0.453 kg), up by 0.51 cents. The contract touched a high of 69.25 cents, the highest since 24 January. May, March, and July contracts posted their fifth higher close in the last six sessions. The May contract has gained 200 points over the past six sessions.

The falling dollar has also supported cotton prices. It is hovering near a two-month low, making US cotton more attractive to international buyers. Analysts suggest that a weak dollar will continue to support cotton prices.

Trading volume was 84,719 contracts, indicating strong market participation. On 14 February, 58,603 contracts were cleared. The CFTC report showed that speculators reduced their net short positions in ICE cotton futures and options by 4,232 contracts, bringing the total net short position to 64,014 contracts as of 11 February. ICE data shows that as of 14 February, the deliverable stock of ICE No. 2 cotton futures remained unchanged at 218 bales.

Severe weather in the US has delayed cotton harvesting, raising supply concerns. According to the National Cotton Council’s 44th Annual Early Season Planting Intentions Survey, US cotton acreage is expected to decline by 14.5 per cent in 2025, with total planting intentions at 9.6 million acres. Upland cotton acreage is estimated at 9.4 million acres, representing a 14.4 per cent decrease. Meanwhile, long-staple cotton acreage is projected at 158,000 acres, 23.5 per cent lower than last year. These figures were released at the 2025 National Cotton Council Annual Meeting on 16 February.

The broader financial markets saw the S&P 500 break its previous record closing high amid earnings season. Market sentiment is also influenced by the upcoming Federal Reserve meeting minutes and rising geopolitical tensions. This week’s US trading is shortened due to a holiday.

Currently, ICE cotton for May 2025 is trading at 68.58 cents per pound (down 0.24 cents). Cash cotton is trading at 66.82 cents (up 0.51 cents), the March 2024 contract at 67.25 cents per pound (down 0.26 cents), the July 2025 contract at 69.51 cents (down 0.18 cents), the October 2025 contract at 70.17 cents (down 0.02 cents), and the December 2025 contract at 69.72 cents (down 0.15 cents). Some contracts remain at the last closing level, with no trading recorded today.

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