ICE cotton rises on speculative buying, hot Texas weather

ICE’s most active December 2025 contract settled at 68.71 cents per pound (0.453 kg), up 0.47 cent. The market touched its highest level since July 18 during the early trading session. The December contract closed within the 68-cent range for the ninth consecutive session, indicating stability but no breakout. Other contracts settled 25 to 72 points higher.

Crude oil prices also rose, supported by optimism over US trade talks, which could ease global economic pressures. Additionally, a larger-than-expected drop in US crude oil inventories boosted prices. Rising oil prices make polyester—a cotton substitute—more expensive, thereby indirectly supporting cotton.

Total trading volume was 28,689 contracts—an increase of 10,070 contracts from the previous day's 18,619. As of July 23, ICE’s certified deliverable stock for No. 2 cotton contracts dropped to 21,635 bales, indicating tighter physical supply.

A market analyst stated that the rise was mainly due to speculative buying and hot weather in Texas.

USDA export sales during the week ending July 17 declined 692 per cent to reach in minus after adjustment of cancellation (-32,700 bales) from the previous week for the current marketing year. However, for the next marketing year, net export sales rose by 132,600 bales, indicating renewed forward demand.

US equity markets remained strong. The S&P 500 and Nasdaq closed at record highs, driven by strong quarterly results from Alphabet (Google) and optimism surrounding AI-related stocks.

On July 24, EU member states voted to impose retaliatory tariffs on US products worth $109 billion.

Currently, ICE cotton for December 2025 is trading at 68.64 cents per pound (down 0.07 cent); cash cotton is at 66.09 cents (up 0.72 cent); the October 2025 contract is at 67.66 cents (up 0.32 cent); the March 2026 contract is at 69.98 cents (down 0.15 cent); the May 2026 contract is at 71.04 cents (down 0.15 cent); and the July 2026 contract is at 71.79 cents (down 0.12 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)