ICE cotton down on favourable weather, sluggish consumption growth

The ICE cotton July 2025 contract settled at 67.83 cents per pound (0.453 kg), down 0.59 cent from the previous day. The December contract settled at 69.52 cents, also down 0.46 cent. Other contracts ranged from 18 to 47 points lower.

Trading volume was reported at 34,224 contracts, compared to 33,460 contracts cleared the previous day. ICE inventory data showed that deliverable No. 2 cotton futures stocks fell slightly to 14,049 bales from 14,577 bales on the previous trading day.

Market analysts noted that good rainfall in West Texas could keep July futures trading between 65 and 69 cents. Lower soybean prices are also negatively affecting cotton prices. Chicago Board of Trade soybean futures fell for the second consecutive session due to US-China trade tensions and a decline in soy oil prices. US stock markets also declined for the second day amid ongoing uncertainty regarding tariffs.

The International Cotton Advisory Committee (ICAC) reported that global cotton production is expected to rise by 7 per cent to 25.8 million tons in 2024–25. However, global cotton consumption is projected to grow by only 2 per cent to 25.5 million tons, suggesting a bearish outlook for the global cotton market.

At present, ICE cotton for July 2025 is trading at 68.89 cents per pound (up 1.06 cents), cash cotton at 66.08 cents (down 0.59 cent), the May 2025 contract at 71.94 cents (up 1.59 cents), the October 2025 contract at 69.66 cents (down 0.41 cent), the December 2025 contract at 70.35 cents (up 0.83 cent), and the March 2026 contract at 71.48 cents per pound (up 0.81 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)