ICE cotton futures have experienced a notable increase, driven by robust U.S. export sales and a weaker U.S. dollar. The March 2025 contract settled at 67.61 cents per pound, marking its highest level since January 10.
This surge follows a significant 10% week-over-week rise in U.S. cotton exports, reaching 348,900 bales, the highest of the season. The weaker dollar has made U.S. cotton more affordable for international buyers, further boosting export demand.
Despite these positive developments, market sentiment remains cautious due to record-high on-call purchases, as reported by the CFTC Commitment of Traders report.
Analysts suggest that while export strength is encouraging, speculative positioning continues to contribute to market uncertainty.
The USDA’s weekly export sales report indicates a 62% increase in cotton exports compared to the four-week average, underscoring the growing global demand for U.S. cotton. However, traders are advised to monitor potential volatility as the market adjusts to these dynamics.
In summary, while ICE cotton prices are on the rise due to strong export performance and a favorable currency environment, market participants should remain vigilant of underlying speculative pressures that may influence future price movements.
