Strong dollar, tariff plans weigh on ICE cotton futures

ICE’s most active December 2025 contract settled at 67.38 cents per pound (0.453 kg), down 0.51 cent or 0.75 per cent. The contract touched its lowest level of 67.22 cents since June 23. The December contract has lost 125 points over the last three sessions. Other contracts ranged from 6 points to 71 points lower, with losses of 56 to 209 points over the same period.

A stronger US dollar made cotton more expensive for overseas buyers, thereby reducing global demand and exerting downward pressure on prices.

Total trading volume on July 8 was reported at 31,854 contracts, compared with 33,685 contracts traded on July 7. ICE-certified deliverable stocks as of July 7 stood at 37,989 bales, down from 40,324 bales on the previous trading day.

Chicago corn futures also continued to fall, approaching their 2025 lows, driven by improved crop conditions and favourable weather in the Midwest. Consistent rainfall in major cotton-growing areas, especially West Texas, has improved crop prospects and added to bearish market sentiment.

Trade concerns intensified after Trump announced plans to impose higher tariffs on 14 countries starting August 1. Japan and South Korea responded by seeking negotiations with the US, aiming to reduce the impact of the new tariffs within the available three-week window.

Market participants are closely monitoring the global demand outlook amid rising geopolitical trade risks and improving US agricultural weather.

Market analysts noted that cotton prices are under pressure due to weak grain markets, a stronger dollar, and good weather in West Texas.

As of the latest update, ICE cotton for December 2025 was trading at 67.38 cents per pound (down 0.10 cent), cash cotton at 64.83 cents (down 0.71 cent), the July 2025 contract at 64.68 cents (down 0.71 cent), the October 2025 contract at 65.85 cents (down 0.23 cent), the March 2026 contract at 66.68 cents per pound (down 0.07 cent), and the May 2026 contract at 69.72 cents (down 0.09 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

ALCHEMPro News Desk (KUL)