ICE cotton rises to July high on dry weather, short covering

However, a stronger US dollar acted as a limiting factor, making dollar-priced cotton more expensive for overseas buyers.

ICE’s most active December 2025 contract settled at 68.59 cents per pound (0.453 kg), up 0.47 cent or 0.70 per cent. This marked the highest close since July 2. During the intraday session, the contract touched 69 cents—the highest level since June 30. It was the second consecutive session of gains. Other cotton contracts closed with gains ranging between 12 and 80 points.

Trading volume on July 15 stood at 39,587 contracts, the highest since June 30. In comparison, the previous session (July 14) recorded a volume of 28,671 contracts. The sharp increase in volume is viewed as a bullish signal, indicating strong trader conviction in the ongoing rally. According to ICE data, certified stocks as of July 14 stood at 34,234 bales, down from 34,509 bales on the previous trading day—a decline of 275 bales.

According to market analysts, weather conditions in West Texas were favourable until July 4, after which it turned dry. The 10-day forecast remains very dry, increasing market volatility and supporting bullish sentiment.

Many investors remain short, and the market is likely experiencing short covering, which may already be underway. CFTC data for the week ending July 8 shows that speculators increased net short positions by 1,746 contracts, bringing the total to 56,887 contracts.

Market participants now await the USDA’s weekly export sales report, due on Thursday, for further insight into cotton demand trends.

As of now, ICE cotton for December 2025 is trading at 68.54 cents per pound (down 0.05 cent), cash cotton at 65.96 cents (up 0.80 cent), the October 2025 contract at 67.24 cents (up 0.03 cent), the March 2026 contract at 69.81 cents (down 0.03 cent), the May 2026 contract at 70.79 cents (down 0.03 cent), and the July 2026 contract at 71.54 cents (down 0.01 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)