ICE cotton futures declined on Tuesday as several negative factors exerted pressure on the market. Weaker demand, a stronger US dollar, an uncertain macroeconomic outlook, and favourable weather conditions in the US further weighed down US cotton prices.
The ICE cotton July 2025 contract settled at 66.49 cents per pound (0.453 kg), down 1.06 cents from the previous session. The contract hit an intraday low of 66.11 cents, the lowest level since April 16. It has lost 268 points over the past three sessions. The December contract settled at 68.34 cents, down 0.74 cent for the day. Other contracts also posted declines ranging from 45 to 92 points.
A stronger US dollar was a major factor dragging down cotton prices. The sharp appreciation in the dollar made cotton purchases more expensive for overseas buyers. Global trade tensions and month-end portfolio rebalancing contributed to gains in the dollar.
Total volume traded for the session stood at 47,283 contracts, indicating increased market participation amid falling prices. A total of 40,502 contracts were cleared the previous day, reflecting robust clearing activity in a volatile trading environment. ICE cotton certified stock as of April 28, 2025, was reported at 14,478 bales, unchanged from the prior day.
Market sentiment remained bearish due to a combination of global macroeconomic pressures and weak commodity fundamentals. Investors rushed to adjust their holdings following a substantial sell-off in both US equities and bonds during April 2025.
The global cotton market is also being impacted by weak consumption trends, particularly in key textile-producing countries such as China, Bangladesh, and Vietnam, where mill demand remains under pressure. According to market analysts, the industry is experiencing economic headwinds caused by tariff uncertainties.
Weakness in other agricultural commodities also contributed to the negative sentiment. Chicago Board of Trade (CBOT) corn and soybean futures fell sharply. Pressure in grain markets stemmed from early planting progress in the US, alongside favourable weather in South America, especially in Brazil and Argentina. These factors added to the overall bearish tone in the agri-commodity complex, which spilled over into cotton futures.
USDA data also indicates good field conditions across the southern US, with soil moisture levels supporting early germination.
As of now, ICE cotton for July 2025 is trading at 66.15 cents per pound (down 0.34 cent), cash cotton at 64.74 cents (down 1.06 cents), the May 2025 contract at 66.35 cents (down 0.03 cent), the October 2025 contract at 68.37 cents (down 0.92 cent), the December 2025 contract at 67.96 cents (down 0.31 cent), and the March 2026 contract at 69.13 cents per pound (down 0.31 cent). A few contracts remained at their previous closing levels, with no trading activity reported today.
