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ICE Cotton Rises Due to Improved Export Outlook and Higher Crude Oil Prices

by Krystal

ICE cotton futures rose on Wednesday, supported by stronger export prospects, rising crude oil prices, and a rebound in stock markets. Higher oil prices make polyester, a synthetic alternative to cotton, more expensive, which benefits cotton. Meanwhile, the US dollar index held steady, offering mixed signals for cotton’s competitiveness in the global market.

The May 2025 ICE cotton contract ended the day at 66.98 cents per pound, up 0.98 cent, marking a gain of 374 points over the last six trading sessions. The July contract closed at 68.16 cents, up 0.97 cent, with a net gain of 364 points over the same period. Other contracts saw gains ranging from 22 to 80 points.

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Oil prices rose 2% after US data showed that crude oil inventories increased less than expected, while stocks of refined products fell. The rise in oil prices makes polyester more costly, providing further support to cotton prices. The total trade volume was 44,777 contracts, up from 38,397 contracts the previous day. Certified cotton stocks remained at 14,488 bales, with no bales awaiting review.

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The increase in cotton prices is driven by expectations of higher US cotton export sales, speculative short covering, and positive stock market momentum. The near-term outlook suggests prices could stay stable or rise, as they may have already reached their seasonal low.

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Traders are awaiting the US Department of Agriculture’s weekly export sales report for more information on cotton demand.

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As of now, May 2025 ICE cotton is trading at 67.12 cents per pound, up 0.14 cent. Cash cotton is at 64.98 cents, up 0.98 cent, while the July 2025 contract is at 68.24 cents (up 0.08 cent). The October 2025 contract is at 69.92 cents (up 0.72 cent), the December 2025 contract at 69.55 cents (down 0.10 cent), and the March 2026 contract at 70.74 cents (up 0.10 cent). Some contracts remained at the previous closing levels, with no trades recorded for today.

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