ICE cotton slips to two-week low on stronger dollar, falling grains

ICE’s most active December 2025 contract settled at 67.67 cents per pound (0.453 kg), down 0.67 cent. During the intraday session, the contract touched 67.57 cents per pound—the lowest level since July 14, 2025. This marks the first close below the 68-cent range since July 11, 2025. Other contracts settled 38 to 110 points lower.

The US dollar index rose 0.30 per cent to 98.91 on July 29, reaching its highest level since June 23, 2025, supported by trade agreements and anticipated interest rate announcements by the Federal Reserve and the Bank of Japan. A stronger dollar makes dollar-denominated commodities like cotton more expensive for foreign investors, further weighing on cotton prices.

Total trading volume was 40,206 contracts—the highest recorded in July 2025 so far. The previous day’s cleared contract volume stood at 28,728 contracts. According to ICE data from July 28, 2025, deliverable cotton stock under the No. 2 futures contract stood at 21,617 bales, unchanged from the previous day.

Cotton futures tracked the Chicago Board of Trade (CBOT) grains lower, as market sentiment turned bearish due to improved crop weather in the US Midwest. CBOT soybean and corn futures fell on forecasts of cooler temperatures and periodic rains, raising expectations for a bumper US soybean harvest. Wheat futures also declined amid harvest progress in the Northern Hemisphere’s winter wheat belt.

According to the USDA’s weekly crop progress report dated July 27, 2025, 55 per cent of the US cotton crop was rated in good-to-excellent condition—down from 57 per cent the previous week, but up from 49 per cent during the same week in 2024.

Currently, ICE cotton for December 2025 is trading at 67.57 cents per pound (down 0.10 cent), cash cotton at 65.96 cents (down 1.45 cent), the October 2025 contract at 65.95 cents (down 0.34 cent), the March 2026 contract at 68.94 cents (down 0.11 cent), the May 2026 contract at 70.05 cents (down 0.13 cent), and the July 2026 contract at 70.86 cents (down 0.14 cent). A few contracts remain at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)