ICE cotton futures hit two-month low on oil slump, weather boost

ICE’s most active December 2025 contract settled at 66.67 cents per pound (0.453 kg), down 0.88 cent, marking its lowest level since April 9. Cotton futures posted a second consecutive day of losses, with prices breaking below the tight five-week trading range.

The July 2025 contract settled at 64.84 cents, down 0.21 cent, breaking an eight-session streak above the 65-cent level. Other contracts posted losses ranging from 2 to 89 points.

The total trading volume on ICE stood at 59,361 contracts, reflecting active participation amid the market decline. Contracts cleared the previous day totalled 44,411, indicating steady clearing activity. As of June 17, deliverable stock for ICE’s No. 2 cotton futures contract rose to 62,332 bales, adding to overall supply pressure.

Market analysts said that crude oil prices declined on hopes that tensions between Israel and Iran would de-escalate. Falling oil prices make polyester—a substitute for cotton—cheaper, thereby exerting downward pressure on cotton prices.

Weather conditions in major US cotton-growing regions remain favourable, placing further pressure on December futures. According to the USDA, US cotton planting progress reached 85 per cent as of June 15, slightly below the 89 per cent reported during the same period last year.

The USDA’s weekly export sales report will be delayed this week due to the Juneteenth holiday on June 19, when US financial markets will also be closed. The USDA’s planted acreage report—a key market-moving release—is scheduled for June 30.

Presently, ICE cotton for July 2025 is trading at 64.84 cents per pound (down 0.21 cent), cash cotton at 64.86 cents (down 0.02 cent), the October 2025 contract at 66.11 cents (down 0.02 cent), the December 2025 contract at 66.67 cents (down 0.88 cent), the March 2026 contract at 67.85 cents per pound (down 0.89 cent), and the May 2026 contract at 68.89 cents (down 0.89 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)