ICE cotton futures made a modest recovery on Tuesday, edging upward as traders regrouped after recent losses.
However, the rebound failed to sustain momentum. By midweek, cotton prices had retreated again—marking a new low for the week—driven by persistent concerns over sluggish global demand and a solid U.S. dollar.
The rebound offered only a brief respite. The May 2025 futures contract climbed back toward 67.0–67.3 cents per pound from last week’s dip near 66.6 cents. Still, the recovery faltered, and prices drifted lower into the week. According to one report, ICE cotton futures hit a fresh one-week low, dragged down by a firm dollar and tepid export sales.
Market watchers point to several key pressures:
Strong U.S. Dollar: Currency strength makes dollar-denominated commodities more expensive for foreign buyers, weighing on cotton demand.
Low Export Sales: Weekly export figures remain underwhelming—falling significantly short of expectations—suggesting weak appetite from importers.
Competitive Alternatives: Softer crude-oil prices are making polyester cheaper, nudging end-users toward synthetic fibers.
Adding to the unease, grain market softness and broader macroeconomic headwinds are reinforcing a cautious tone in cotton trading.
Outlook:
Traders remain on edge, awaiting direction from upcoming U.S. economic data and export sales reports. Unless there’s a breakout in demand—especially from major importers like China—or a reversal in dollar strength, prices may linger near the current weekly lows. Any shift in energy markets, especially crude oil, could also alter the competitive landscape between cotton and synthetics.
