The US dollar fell sharply against both the euro and the pound, reaching a 3.5-year low amid expectations that the Federal Reserve will implement more interest rate cuts than previously anticipated. A weaker dollar supports cotton prices by making US cotton cheaper for foreign buyers holding other currencies.
US crude oil futures closed higher as inventories declined, and demand rose with the summer driving season. However, gains were limited due to easing supply concerns in the Middle East. Higher oil prices have increased the cost of producing polyester, a major substitute for cotton, thereby indirectly boosting cotton’s price competitiveness.
ICE’s most active December 2025 contract settled at 68.80 cents per pound (0.453 kg), up 0.48 cent. The contract touched an intraday high of 69.10 cents, the highest level since May 7. It gained a total of 213 points over the past five sessions. Other contracts gained between 27 and 63 points on Thursday, reflecting broad strength across the board.
Daily trading volume stood at 39,350 contracts, while 39,979 contracts were cleared as of the previous session, indicating slightly reduced activity.
According to the USDA’s weekly export report, US cotton export sales for the current marketing year (week ending June 19) totalled 27,300 bales—down 67 per cent from the prior week and 71 per cent below the four-week average.
ICE-certified cotton stocks (deliverable No. 2 contracts) stood at 61,136 bales as of June 25, unchanged from the previous trading session.
A market analyst stated that the weak dollar and strong oil prices support cotton, but exports remain disappointing. Acreage data is still awaited for a clearer understanding of market trends.
As of now, ICE cotton for December 2025 was trading at 68.95 cents per pound (up 0.15 cent). Cash cotton traded at 66.89 cents (up 0.27 cent), the July 2025 contract at 67.07 cents (up 0.63 cent), the October 2025 contract at 68.49 cents (up 0.35 cent), the March 2026 contract at 70.24 cents (up 0.12 cent), and the May 2026 contract at 71.22 cents (up 0.06 cent). A few contracts remained at their previous closing levels, with no trading recorded today.
ALCHEMPro News Desk (KUL)
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