ICE cotton inches up, dollar support muted by cheaper oil

The ICE cotton July 2025 contract settled at 68.42 cents per pound (0.453 kg), up 0.01 cent from the previous day. The contract managed to retain Friday’s gains but failed to recover from last week’s 39-point loss. The December contract settled at 69.98 cents, up 0.27 cent on the day. Other contracts closed 16 to 29 points higher.

The US dollar index weakened further after a sharp surge in Taiwan’s dollar, raising speculation that some Asian countries may allow their currencies to appreciate in exchange for US trade concessions. The weaker dollar made cotton purchases more affordable for overseas buyers. Meanwhile, crude oil prices slipped over 1 per cent after OPEC+ countries decided to ramp up output. Lower oil prices reduced the cost of producing polyester, a man-made substitute for cotton.

Lighter trading volumes were observed due to holidays in several countries including China and the United Kingdom.

The USDA Crop Progress Report showed that 21 per cent of the US cotton crop is planted, up from 15 per cent last week and ahead of the five-year average of 20 per cent.

ICE cotton futures reached a one-week high on Monday, supported by a weaker US dollar, which made dollar-priced cotton cheaper for foreign buyers. Market analysts said the weaker dollar provided support, with possible light short covering by speculators amid low trading volumes.

Wall Street’s main indexes opened lower, as President Donald Trump’s new tariffs reignited fears of a global trade war.

Last week’s USDA weekly export sales report showed 366,000 running bales (RB) of Upland cotton were exported, up 25 per cent from the previous week.

At present, ICE cotton for July 2025 is trading at 68.18 cents per pound (down 0.24 cent), cash cotton at 66.67 cents (up 0.01 cent), the May 2025 contract at 70.35 cents (up 0.17 cent), the October 2025 contract at 70.07 cents (up 0.16 cent), the December 2025 contract at 69.64 cents (down 0.34 cent), and the March 2026 contract at 70.80 cents per pound (down 0.34 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)