Cotton, often referred to as the 'white gold,' has been a staple commodity for centuries, intricately woven into the fabric of human civilization.
Known for its versatility, cotton is predominantly used in the production of textiles, ranging from clothing, and bedding to industrial fabrics and medical supplies. Its natural properties, including softness, durability, and breathability, make it a preferred choice for a wide array of applications.
Beyond the textile industry, cottonseed is utilized in various industries, including animal feed, cooking oil, and even paper products.
As one of the oldest cultivated fibers, cotton boasts a rich history and continues to be a key player in global market. The widespread demand for cotton makes ICE NYBOT Cotton Futures one of the most highly traded futures contracts in the global commodity market.
As a highly tradable commodity, cotton prices are influenced by various factors such as weather conditions, supply and demand dynamics, geopolitical events, and global economic trends.
Understanding these intricacies is crucial for traders in the global commodities industry, to better navigate the volatile cotton market and capitalize on potential opportunities for profit and risk management.
Trading ICE US Cotton Futures
The Intercontinental Exchange US (ICE US) stands as one of the leading derivatives exchanges globally, renowned for its diverse range of financial products and robust trading platform.
In 2007, ICE US acquired NYBOT, consolidating its position in the commodity derivatives landscape. This acquisition brought NYBOT's established contracts, expertise, and market infrastructure under the umbrella of ICE US, expanding its reach into agricultural and soft commodities trading.
ICE NYBOT’s Cotton No.2 Futures contract is a cornerstone of the global cotton market, offering market participants a vital tool for managing price risk and gaining exposure to cotton prices.
Traders can trade ICE Cotton Futures through Orient Futures Singapore. Orient Futures Singapore is a MAS regulated forex broker (Monetary Association of Singapore), making Orient Futures Singapore a trusted and reliable brokerage firm for accessing and trading Cotton Futures.
Find out the 5 Benefits of Choosing a Regulated Forex Broker.
Apart from Cotton Futures, ICE US also offer other Futures Contracts such as NYBOT Cocoa Futures, NYBOT Coffee Futures, NYBOT Dollar Index Futures, NYBOT Sugar Futures, and more.
ICE US Cotton Futures Contract Specifications
The ICE Futures US NYBOT Cotton #2 Futures Contract has the following specifications:
The Futures Contract has a minimum price fluctuation of 1/100 of a cent per pound, which is equivalent to $5.00 per contract.
Contract months are March, May, July, October, and December
The last trading day of the contract month is twelve business day from the end of the spot month.
NYBOT Trading Hours are as follows:
10am – 3.20am (Singapore time)
ICE Cotton Futures Symbol: CT
NYBOT Exchange Cotton Futures Market News
ICE Cotton Futures Price Hits Over Four-Month High
According to Reuters, ICE Cotton Futures saw an increase for the fourth consecutive month on 8th February 2024. This was supported by the strength in the oil market as traders prepared for the release of a significant federal monthly supply-demand report later in the day.
Cotton contracts for March (CTc1) climbed 0.16 cent to reach 88.63 cents per lb on 8th February. This marks the highest level since late September last year.
Bailey Thomen, a cotton risk management consultant at StoneX Group, noted the recent strong uptrend in cotton and observed significant liquidations and adjustments in anticipation of the release of the U.S. Department of Agriculture's (USDA) World Agricultural Supply and Demand Estimates (WASDE) report.
Meanwhile, oil prices rose as investors evaluated the implications of Israel's rejection of a ceasefire offer from Hamas and unexpected declines in U.S. fuel stocks. Higher oil prices can increase the cost of polyester, a substitute for cotton.
Thomen also remarked on the supportive market conditions, highlighting the robust pace of shipments and export sales, despite not matching the previous week's levels entirely.
ICE Cotton Futures Prices
According to Trading Economics, Cotton ICE Futures have maintained their upward momentum, reaching approximately five-month highs of 89 cents per pound in February, primarily driven by indications of strong demand.
According to the latest United States Department of Agriculture (USDA) weekly sales report, net sales for the 2023/2024 period amounted to 349,400 running bales, marking a significant increase of 69% from the previous week and 37% higher than the four-week average. This surge was attributed to robust demand from China and Vietnam.
Additionally, exports continued to reach peak levels for the marketing year, with 396,700 bales shipped, consistently surpassing 200,000 bales in five out of the previous six reports.
In contrast, the USDA's January WASDE report projected a global production increase of 260,000 bales compared to December, driven by larger crops from China and Argentina.
ICE Cotton Futures Forecast
Trading Economics expects ICE Cotton Futures to trade at 83.38 USD/lbs by the end of this quarter, and 78.14 USD/lbs in 12 months’ time.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
