ICE cotton rises on strong China demand, dollar caps gains

Yesterday, ICE cotton March 2025 contract settled at 70.77 cents per pound (0.453 kg), up by 0.34 cents. The contract gained 2.7 per cent in this week. It was largest weekly rise since the week ending September 20.

Dollar index rose to 13-month high. Stronger dollar capped cotton gains as it made cotton purchase costlier for overseas buyers. However, crude oil gained 6 per cent this week after new developments in Russia and Ukraine. Increase in price of crude oil makes polyester costlier.

The trading volume was 29,105 contracts, the lowest in seven weeks, compared to 34,339 contracts cleared the previous day. The market appears to be transitioning into holiday mode, with lighter trading activity and reduced volume expected in the coming days.

Analysts said that record short positions in the market contributed to the rebound as traders covered these positions.

Mainland China accounted for 21,400 tons of US cotton export sales, highlighting strong demand. For the next market year, export sales increased by 16,000 bales.

ICE cotton for March 2025 was settled at 70.77 cents per pound (up 0.34 cent). Cash cotton was settled at 66.77 cents (up 0.34 cent), the December 2024 contract at 71.65 cents per pound (up 2.46 cent), the May 2025 contract at 71.89 cents (up 0.24 cents), the July 2025 contract at 73.00 cents (up 0.20 cent) and the October 2025 contract at 71.65 cents (up 0.11 cents).

Fibre2Fashion News Desk (KUL)