ICE Cotton Futures Extend Decline Amid Demand Woes and Dollar Strength
ICE cotton futures continued their downward trajectory on Tuesday, pressured by a combination of weak global demand, a surging U.S. dollar, and macroeconomic uncertainty. Favourable weather conditions in U.S. cotton-growing regions further contributed to the bearish momentum.
The July 2025 cotton contract on the Intercontinental Exchange (ICE) settled at 66.49 cents per pound, down 1.06 cents from the previous session, after hitting an intraday low of 66.11 cents the lowest since April 16. The contract has shed 268 points over the last three sessions. December futures also fell, closing at 68.34 cents per pound, down 0.74 cent. Other contracts posted losses between 45 and 92 points.
A strong U.S. dollar played a key role in dampening market sentiment, making American cotton more expensive for international buyers. The dollar’s gains were supported by end-of-month portfolio adjustments and lingering global trade tensions.
Traded volume for the session reached 47,283 contracts, up from 40,502 the previous day signaling heightened market activity amid price volatility. Certified ICE cotton stock as of April 28 stood unchanged at 14,478 bales.
Bearish sentiment also stems from broader economic pressures and sluggish commodity fundamentals. The global cotton market remains under strain as mill demand continues to weaken in key textile hubs like China, Bangladesh, and Vietnam. Analysts note that trade uncertainties and economic headwinds are hindering consumption recovery.
Adding to the negative tone, futures across other agricultural commodities also slipped. Corn and soybean prices on the Chicago Board of Trade (CBOT) declined sharply, pressured by favorable planting conditions in the U.S. and optimistic weather forecasts for Brazil and Argentina. This broader weakness in the agri-commodity space further spilled over into the cotton market.
The USDA reported positive field conditions across the southern U.S., with adequate soil moisture supporting early-stage cotton crop development a factor seen as bearish for prices in the short term.
As of the latest trading update, ICE July 2025 cotton futures were down to 66.15 cents per pound, while cash cotton dropped to 64.74 cents. Other key contracts were also down, including May 2025 (66.35 cents), October 2025 (68.37 cents), December 2025 (67.96 cents), and March 2026 (69.13 cents). A few contracts remained unchanged due to low trading activity.
