The ICE cotton July 2025 contract settled at 65.48 cents per pound (0.453 kg), down 0.80 cent from the previous day. The contract touched a one-month low of 65.43 cents, reflecting bearish sentiment. Cotton futures saw broad declines, with contracts from July 2025 through May 2026 posting their sixth loss in the past seven sessions. The July contract has now declined by a net 294 points over those seven sessions.
The December 2025 contract settled at 68.25 cents, down 52 points, with a seven-session net loss of 173 points. Other contract months (beyond July and December) also ended lower, with losses ranging from 34 to 48 points.
Total trading volume for the day was 44,173 contracts, compared to 41,465 contracts cleared the previous day. ICE reported that the deliverable stock for the No. 2 cotton futures contract increased to 33,100 bales as of May 13, up from 27,240 bales on the prior trading day—indicating rising available supply.
According to market analysts, planting conditions are improving in the south, supporting the expectation of a better-than-expected crop outlook. The USDA’s weekly crop progress report showed that as of May 11, 2025, 28 per cent of the US cotton crop had been planted—an increase of 7 percentage points from the previous week.
On the demand side, a temporary agreement between the United States and China to reduce tariffs for at least 90 days has eased some fears related to trade tensions and a potential economic recession. However, market participants remain uncertain about what will happen after the 90-day period ends, which has made the market nervous about longer-term cotton demand. Traders are still assessing the tariff proposal and realising that tariffs remain in place, highlighting unresolved trade concerns.
Traders are now awaiting the USDA’s weekly export sales report (due on Thursday) for clearer insights into current global demand trends for US cotton.
In the external market, crude oil prices declined following data showing a surprise increase in US crude inventories, raising fresh concerns about an oil oversupply. The drop in oil prices makes polyester production—a substitute for cotton—cheaper, adding indirect pressure on cotton demand.
Other agricultural markets, including Chicago wheat and corn, also edged lower. Despite recent strong demand for US corn and a weaker dollar, good global harvest prospects for grains have kept prices near weekly lows.
At present, ICE cotton for July 2025 is trading at 65.20 cents per pound (down 0.28 cent), cash cotton at 63.73 cents (down 0.80 cent), the October 2025 contract at 68.37 cents (down 0.46 cent), the December 2025 contract at 68.10 cents (down 0.15 cent), the March 2026 contract at 69.45 cents per pound (down 0.45 cent), and the May 2026 contract at 70.59 cents (up 0.06 cent). A few contracts remained at their previous closing levels, with no trading recorded today.
ALCHEMPro News Desk (KUL)
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