ICE cotton slumps as US planting exceeds expectations

ICE’s most active December 2025 contract settled at 68.13 cents per pound (0.453 kg), down 1.19 cents or 1.7 per cent.

According to ICE data, deliverable stock for the No. 2 cotton contract stood at 45,110 bales as of June 27, down from 51,495 bales in the previous session—a potentially supportive but overlooked factor.

The USDA’s planting intentions report estimated 2025 cotton acreage at 10.12 million acres, higher than the market estimate of 9.73 million acres, though still below the actual figure of 11.183 million acres in 2024.

Prior to the USDA report, cotton futures were already showing weakness due to profit-taking after five consecutive sessions of gains.

After market close, the USDA Crop Progress Report showed an improvement in crop quality, with 51 per cent of US cotton rated good to excellent, up from 47 per cent last week and 50 per cent at the same time last year.

Planting progress reached 95 per cent, compared to 92 per cent last week, 97 per cent during the same period last year, and a five-year average of 98 per cent. The improvement in crop quality and near-complete planting progress indicate stable production conditions despite a small lag.

Traders will now closely monitor weather patterns, crop development, and export trends to reassess the short-term outlook.

As of now, ICE cotton for December 2025 is trading at 68.45 cents per pound (up 0.32 cent). Cash cotton settled at 66.43 cents (down 1.12 cent), the July 2025 contract at 68.02 cents (up 1.74 cent), the October 2025 contract at 68.04 cents (up 0.36 cent), the March 2026 contract at 69.72 cents per pound (up 0.26 cent), and the May 2026 contract at 70.72 cents (up 0.22 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)