International Cotton Market

01-Mar-2025 08:03 AM

International Cotton Market
In Friday’s session, ICE cotton futures contracts saw a decline of 129 to 135 points in the front months. The May contract fell by 209 points (-3.1%) this week. External market factors played a significant role, with crude oil futures dropping by 40 cents per barrel, while the US dollar index rose by $0.329.
Managed money speculators increased their net short position by 11,067 contracts as of February 25, bringing the total net short to a record 68,453 contracts.
Export sales data shows total export commitments at 9.61 million round bales (RB), which is 8% lower than last year and represents 93% of USDA’s export projection, aligning with the usual pace.
Actual shipments stand at 4.508 million RB, down 16% year-over-year and covering 44% of the USDA projection, lagging behind the 46% average.
On The Seam, 4,795 bales were sold online on February 27, with an average price of 59.13 cents per pound.
Cotlook A Index fell by 50 points on February 27 to 77.50 cents per pound.
ICE cotton stocks remained stable on Thursday, with certified stocks at 12,653 bales.
USDA reduced its Adjusted World Price (AWP) by 78 points to 53.89 cents per pound on Thursday.
Overall, bearish pressure continues to weigh on the cotton market, driven by global factors, a stronger dollar, and declining export performance.