The ICE cotton July 2025 contract settled at 66.11 cents per pound (0.453 kg), up 0.48 cent from the previous day. The contract gained 122 points this week but is still down 199 points over the past eight weeks. The December 2025 contract settled at 68.63 cents, up 37 points, and recorded a weekly gain of 96 points.
The US dollar index weakened as traders feared a trade war escalation, making cotton purchases cheaper for overseas buyers. The dollar's weakness supported US cotton prices.
Total trading volume on May 23 stood at 36,663 contracts, up from 29,275 contracts on May 22. The average daily volume for the week was 32,311. Deliverable stocks under ICE’s No. 2 contract rose to 42,240 bales as of May 22, up from 39,796 bales the previous day.
President Trump’s announcement of a 50 per cent tariff on EU goods, effective from June 1, 2025, has sparked global trade tensions. The proposal added uncertainty to financial markets and is seen as a long-term negative for both equities and cotton.
US stock markets declined on May 23 and were heading for a weekly loss following the tariff announcement.
On the supply front, US cotton production remains under scrutiny due to weather uncertainty in West Texas and historically low acreage over the past 20 years.
Elsewhere, CBOT wheat futures fell due to profit-taking, following a recent rally driven by weak USDA crop data, adverse weather, and recovering demand.
ICE cotton for July 2025 settled at 66.11 cents per pound (up 0.48 cent), cash cotton at 64.36 cents (up 0.48 cent), the October 2025 contract at 68.43 cents (up 0.25 cent), the December 2025 contract at 68.63 cents (up 0.37 cent), the March 2026 contract at 70 cents (up 0.37 cent), and the May 2026 contract at 70.95 cents (up 0.41 cent).
ALCHEMPro News Desk (KUL)
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