About Cotton
Cotton is the main natural fibre for textiles. The US is the top exporter, while China, India, Pakistan, Bangladesh and Vietnam drive mill demand, so global apparel consumption matters a lot.
What moves the cotton price
- Weather in Texas, India, China and other major growing regions.
- Weekly USDA export sales.
- Textile and apparel demand and competition from synthetic fibres.
- Policy, including state reserves and trade tariffs.
Producers and buyers
China, India, the United States and Brazil are the largest growers, and the US and Brazil are the biggest exporters. Demand comes from spinning mills, largely in China, Bangladesh, Vietnam, Pakistan and Turkey, so clothing demand and the health of global retail matter. Competition from cheaper synthetic fibres such as polyester, which is made from oil, caps how far mills will pay up for cotton.
Weather and the crop calendar
US cotton is planted from April to June and harvested from about August to December, with West Texas drought often the main supply risk. Indian output depends on the monsoon. Weekly USDA export sales reports are a key indicator of demand for US cotton, and trade policy between the US and China has at times swung prices sharply.
Contract specifications
| Benchmark future | ICE Cotton No. 2 (CT) |
|---|---|
| Contract size | 50,000 pounds net weight |
| Minimum tick | 0.01 cent per pound = $5 per contract |
| Contract months | March, May, July, October, December |
| Settlement | Physical delivery from ICE-licensed warehouses |
| Key data | USDA weekly export sales, WASDE, crop progress |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
ICE Cotton No. 2 trades from about 9:00 pm US Eastern Time (Sunday to Thursday) through 2:20 pm the next day.
Contract basics
ICE Cotton No. 2 covers 50,000 pounds, quoted in cents per pound.
Quote unit
US cents per pound. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Cotton FAQ
What moves the price of cotton?
Weather in Texas, India, China and other major growing regions. Weekly USDA export sales. Textile and apparel demand and competition from synthetic fibres. Policy, including state reserves and trade tariffs.
When does cotton trade?
ICE Cotton No. 2 trades from about 9:00 pm US Eastern Time (Sunday to Thursday) through 2:20 pm the next day.
What is the standard cotton contract?
ICE Cotton No. 2 covers 50,000 pounds, quoted in cents per pound.
What drives cotton prices?
Weather in major growing regions, mill demand in Asia, export sales, polyester prices and trade policy.
Where is US cotton grown?
Across the southern 'Cotton Belt', with Texas the largest producing state.