Pic: Adobe Stock
Yesterday, the ICE cotton May 2025 contract settled at 63.24 cents per pound (0.453 kg), down by 2.27 cents (3.4 per cent). The contract hit an intraday low of 62.54 cents, the lowest level since August 2020. The December contract settled at 66.52 cents, down 1.57 cents. Other contracts also declined, losing between 69 and 210 points on Tuesday.
NYMEX crude oil hit a three-month low yesterday. Brent crude oil fell to a six-month low as OPEC+ countries decided to increase oil production in April.
There was a strong sell-off, with trading volume reaching 122,603 contracts, the second-highest volume ever recorded. Options trading volume reached 43,773 contracts (21,201 calls / 22,572 puts), marking the fourth-highest options volume in history. Combined trading volume (futures and options) reached 166,376 contracts, setting a new record. ICE data (as of March 3) showed that deliverable No. 2 cotton futures contract stocks remained unchanged at 12,653 bales.
Market analysts said that cotton prices have broken multi-year support at 66 cents and may face further pressure due to the second wave of trade tensions.
Chicago corn, soybeans, and wheat also declined further on March 4, hitting multi-week lows. Wall Street's major indices fell, with the Nasdaq Composite down more than 10 per cent from its all-time high.
Currently, ICE cotton for May 2025 is trading at 63.56 cents per pound (up 0.32 cents). Cash cotton is trading at 61.24 cents (down 2.27 cents), the March 2024 contract at 62.04 cents per pound (down 2.10 cents), the July 2025 contract at 64.87 cents (up 0.35 cents), the October 2025 contract at 66.62 cents (down 1.70 cents), and the December 2025 contract at 66.73 cents (up 0.21 cents). A few contracts remained at the previous closing level, with no trading observed today.
Fibre2Fashion News Desk (KUL)