ICE cotton futures rebounded after sustained weakness last week. Sharply lower prices encouraged buying, and short speculators also rushed to book profits. Optimism over a potential Federal Reserve rate cut and temporary relief from tariff concerns further boosted sentiment in the cotton futures market.
ICE’s most active December 2025 contract settled at 67.78 cents per pound (0.453 kg), up 0.40 cent or 0.59 per cent. This marked the contract’s first gain in a week. Other cotton contracts closed mixed, with prices ranging from 39 points higher to 13 points lower, reflecting continued uncertainty across the curve.
Futures are currently trading near the midpoint of their 8-week price range, indicating market indecision amid broader economic and trade-related concerns. The rebound was largely attributed to bargain hunting and profit-taking by short speculators, as prices recovered from a more than two-week low.
Total trading volume for July 9 was reported at 28,394 contracts, down slightly from 31,854 contracts the previous day. Deliverable stocks under the ICE No. 2 cotton futures contract remained unchanged at 37,989 bales as of July 8, according to official exchange data.
The market is now focused on two major upcoming reports from the US Department of Agriculture (USDA): the weekly export sales report on Thursday and the July WASDE (World Agricultural Supply and Demand Estimates) report on Friday. These reports are expected to provide direction on global cotton demand, US export performance, and domestic and international stock projections, which could significantly influence market sentiment.
On the trade front, the 90-day deadline for President Trump’s previously announced tariff pause has been extended to August 1, offering temporary relief to market participants. On July 9, the US administration sent letters to the leaders of 8 countries, warning that tariffs of up to 50 per cent would be imposed on exports to the US unless bilateral trade deals are reached.
These letters follow an earlier round on July 7, in which similar warnings were issued to 14 countries, including Japan and South Korea, with tariff threats ranging from 25 per cent to 40 per cent.
Despite ongoing tariff threats, market attention shifted following the release of the Federal Reserve’s meeting minutes, which sparked optimism over potential interest rate cuts later this year, although no definitive timeline was provided.
Broader markets responded positively, with Wall Street closing higher, led by Nasdaq, as Nvidia’s market capitalisation briefly touched $4 trillion. However, in contrast, soybean futures on the Chicago Board of Trade fell for a third consecutive session, driven by concerns that escalating tariff tensions could dent US crop demand.
Currently, ICE cotton for December 2025 is trading at 67.77 cents per pound (down 0.01 cent), cash cotton at 65.11 cents (up 0.28 cent), the July 2025 contract at 64.96 cents (up 0.28 cent), the October 2025 contract at 66.48 cents (up 0.13 cent), the March 2026 contract at 69.14 cents per pound (unchanged), and the May 2026 contract at 70.17 cents (down 0.02 cent). A few contracts remained at their previous closing levels, with no trading recorded today.
