The ICE cotton July 2025 contract settled at 66.07 cents per pound (0.453 kg), down 0.05 cent from the previous day. The December 2025 contract settled at 68.71 cents, down 3 points. The trading session was quiet and uneventful, with clear signs of a lack of momentum.
Crude oil prices fell due to market focus on Iranian supply issues and a surprise drop in US crude inventories, adding mixed signals to the commodities market.
The US dollar weakened against major currencies, driven by concerns over tax cuts, spending bills, and low demand in a 20-year Treasury bond auction—factors that improved US export competitiveness.
Daily volume stood at 26,661 contracts, marking the lowest trading volume of 2025 so far. The previous low was 18,138 contracts on December 31, 2024. In contrast, 32,117 contracts were cleared on May 20, reflecting a noticeable dip in market participation.
ICE data showed that certified cotton stockpiles under the No. 2 contract rose from 36,366 bales to 39,796 bales on May 20, indicating a build-up in available inventory and reflecting a balanced-to-bearish near-term supply sentiment.
Market analysts noted that cotton was facing resistance at the 10-day moving average of 65.96 cents, stalling the recent rebound. The light volume suggests trader caution and a wait-and-watch approach amid technical resistance.
Gains in grains offered some support. CBOT wheat hit a one-month high due to short-covering and production concerns in the Northern Hemisphere. Corn and soybean futures also posted gains, helping to stabilise cotton prices by lifting overall sentiment in agri-commodities.
US stock markets fell sharply, reacting to fears that tax reforms could significantly increase national debt. This caused Treasury yields to rise, further unsettling investors.
Market participants are now awaiting the USDA’s weekly export sales report, due on Thursday, for fresh cues on global cotton demand.
At present, ICE cotton for July 2025 is trading at 66.01 cents per pound (down 0.06 cent), cash cotton at 64.32 cents (down 0.05 cent), the October 2025 contract at 68.65 cents (up 0.03 cent), the December 2025 contract at 68.60 cents (down 0.11 cent), the March 2026 contract at 69.97 cents per pound (down 0.12 cent), and the May 2026 contract at 70.83 cents (down 0.20 cent). A few contracts remained at their previous closing levels, with no trading recorded today.
ALCHEMPro News Desk (KUL)
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