ICE cotton futures gained on Tuesday following a fall in the US dollar index and gains in the grain market. A declining trend in the US dollar makes cotton purchases more attractive for overseas buyers. Analysts said that US cotton prices found support at the current level.
Yesterday, the ICE cotton March 2025 contract settled at 67.66 cents per pound (0.453 kg), up by 0.06 cents. The contract touched a high of 68.30 cents during the session. Other contracts settled between 55 points higher and 10 points lower yesterday, following a two-day holiday.
The US dollar index slipped 1.2 per cent, boosting the appeal of dollar-denominated cotton for international buyers.
The total trading volume was 43,816 contracts, down from Friday’s 47,653 contracts.
The cotton market also drew support from rising grain futures in Chicago, with corn and soybeans gaining due to drought concerns in Argentina and rainfall in Brazil. Despite the recent gains, the four-session net increase for March futures was only 16 points, reflecting limited momentum.
Analysts highlighted a support level at 66 cents, with resistance at 68 cents, and expect prices to remain range-bound between 65 and 69 cents due to weak demand.
Concerns about potential acreage shifts from cotton to grains like corn, along with ongoing US trade policy tensions, further weigh on price prospects. The broader market sentiment remains subdued, with limited upward pressure in the near term.
Presently, ICE cotton for March 2025 was traded at 67.34 cents per pound (down 0.32 cent). Cash cotton was traded at 65.16 cents (up 0.06 cent), the May 2024 contract at 68.43 cents per pound (down 0.35 cent), the July 2025 contract at 69.50 cents (down 0.31 cent), the October 2025 contract at 69.30 cents (up 0.55 cent), and the December 2025 contract at 69.25 cents (down 0.12 cent). A few contracts remained at the level of the last closing, with no trading noted today.
