ICE cotton falls for 4th straight day on selling pressure, crude drop

ICE’s most active December 2025 contract settled at 66.36 cents per pound (0.453 kg), down 0.89 cent or 1.32 per cent. The contract lost 187 points, or 2.7 per cent, on a weekly basis. Other contracts registered declines of up to 119 points, though a few distant contracts recorded gains. Contracts from October 2025 through October 2027 posted weekly losses ranging from 121 to 259 points, underscoring the severity of the medium-term slump. A new contract, July 2028, was listed but saw no trading activity on its debut day.

The US dollar recorded its sixth straight day of gains, making US cotton more expensive for importers and encouraging selling by foreign producers.

Crude oil prices fell nearly $2 per barrel due to speculation that OPEC+ may increase output and sluggish US employment data. The decline in crude indirectly pressured cotton as polyester became cheaper.

Total trading volume reached 55,382 contracts—marking the highest daily volume in five weeks—compared to 30,846 contracts cleared the previous day. As of July 31, ICE reported deliverable inventory for No. 2 cotton at 21,617 bales, unchanged from the prior day, indicating stable certified stock levels.

The ongoing decline was attributed to widespread risk aversion across global markets, including agricultural commodities, equities, and bonds, amid mounting macroeconomic fears. Technical breakdowns triggered speculative selling.

US stock markets plunged, with the S&P 500 posting its biggest one-day drop in over two months, driven by new US tariffs and a weaker-than-expected July jobs report. A downward revision to June employment data further heightened concerns about a potential economic slowdown, shaking investor confidence.

A weaker USDA Export Sales Report for the week ending July 24 also added pressure on cotton prices.

ICE cotton for December 2025 settled at 66.36 cents per pound (down 0.89 cent), cash cotton at 64.36 cents (unchanged), the October 2025 contract at 64.42 cents (down 1.19 cent), the March 2026 contract at 67.89 cents (down 0.91 cent), the May 2026 contract at 68.86 cents (down 0.88 cent) and the July 2026 contract at 69.74 cents (down 0.83 cent).

ALCHEMPro News Desk (KUL)