ICE cotton hits 6-week low amid demand concerns

The most active December 2025 contract on ICE settled at 67.65 cents, down 6 points from the previous day. During the session, the contract touched a low of 67.34 cents—the lowest level since May 1, 2025. However, the July 2025 contract settled slightly higher at 65.47 cents per pound (0.453 kg), up 0.05 cent. It traded within a tight range of 37 points above and below the unchanged level, indicating low volatility. The December contract also showed range-bound behaviour, with an intraday high up 27 points and a low down 37 points from the previous close.

On June 11, ICE trading volume in cotton futures was recorded at 79,946 contracts, indicating active trader engagement despite limited price movement. This was slightly lower than the 99,170 contracts traded on June 10 but still reflects a high level of participation in the cotton market. According to ICE data released for June 10, inventory for the No. 2 deliverable cotton futures contract rose to 53,418 bales, compared to 53,351 bales reported the previous day.

Global market trends, macroeconomic pressures, and policy-related uncertainties continue to contribute to the cautious sentiment among market participants.

The USDA’s latest projections for the 2025–26 season indicate lower global cotton production, but higher mill use, suggesting a balanced demand-supply outlook for the upcoming year.

Market analysts noted that while cotton acreage may decline, weak demand and ongoing weather-related pressures could push prices down to 64 cents per pound in the near term.

Currently, ICE cotton for July 2025 is trading at 65.34 cents per pound (down 0.13 cent); cash cotton at 63.72 cents (up 0.05 cent); the October 2025 contract at 65.28 cents (down 0.44 cent); the December 2025 contract at 67.52 cents (down 0.13 cent); the March 2026 contract at 68.89 cents per pound (down 0.11 cent); and the May 2026 contract at 70.01 cents (down 0.08 cent). A few contracts remained at their previous closing levels, with no trading activity recorded today.

ALCHEMPro News Desk (KUL)