ICE cotton futures rose over 2% on Thursday, bolstered by a weakening US dollar and increased export activity.
The lower dollar made US cotton more appealing to foreign buyers, while stronger demand and higher export sales contributed to the positive market sentiment. The USDA reported that export sales were up 45% week-on-week, with shipments reaching 334,000 bales, reflecting strong international interest.
Additionally, easing concerns over tariffs and high oil prices further supported cotton prices. The May 2025 ICE cotton contract settled at 65.
21 cents per pound, marking its third gain in the last four sessions.
Other contracts also saw gains, further reflecting the momentum. The dollar index dropped to its lowest level since November 2024, further enhancing cotton’s global competitiveness.
The market’s positive performance is also driven by developments in broader agricultural markets, with higher oil prices and improved demand dynamics influencing cotton’s value. The overall rise in agricultural commodities and eased trade concerns boosted cotton prices, with significant activity in futures trading and a growing deliverable cotton inventory.
