The ICE cotton July 2025 contract settled at 65.33 cents per pound (0.453 kg), down 0.24 cent from the previous day. The contract touched 64.91 cents, the lowest level since May 19. The December 2025 contract settled at 68.10 cents, down 22 points.
The US dollar index strengthened for the second consecutive day, making US cotton more expensive for overseas buyers. This dampened prospects for US cotton export demand. The dollar rose on optimism surrounding a potential trade deal and an improving outlook for the US economy.
Market analysts noted that the market is facing pressure from both weather-related improvements in Texas and weakness in grain prices.
A key factor behind the decline was recent rainfall in West Texas, a major cotton-growing region, which improved crop conditions and added supply-side pressure.
According to ICE data released on May 27, the deliverable No. 2 cotton futures contract inventory rose to 46,517 bales, up from 42,240 bales the previous trading day, indicating rising available stocks. The increase in deliverable stocks reflects improved crop conditions and higher supply expectations, which is bearish for prices.
In the grain markets, CBOT (Chicago Board of Trade) wheat prices rose slightly but remained near five-year lows due to favourable harvest prospects in the Northern Hemisphere and weak global demand. Corn and soybean prices declined, contributing to broader weakness across the agricultural commodity complex.
Meanwhile, US stock indexes closed lower as investors digested the Federal Reserve’s latest meeting minutes, while chip design companies saw declines in late trading.
Overall, the cotton market is under pressure from a combination of favourable US crop weather, a stronger dollar, rising inventories, and bearish sentiment in other commodity and equity markets, with prices nearing key technical support levels.
Presently, ICE cotton for July 2025 was traded at 65.78 cents per pound (up 0.45 cent), cash cotton at 63.58 cents (down 0.24 cent), the October 2025 contract at 67.76 cents (down 0.26 cent), the December 2025 contract at 68.52 cents (up 0.42 cent), the March 2026 contract at 70.04 cents per pound (up 0.46 cent), and the May 2026 contract at 71.07 cents (up 0.42 cent). A few contracts remained at their previous closing levels, with no trading recorded today.
ALCHEMPro News Desk (KUL)
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