The ICE cotton July 2025 contract settled at 66.12 cents per pound (0.453 kg), up 0.48 cent from the previous day. The contract has gained 123 points over the last two trading sessions. The December 2025 contract settled at 68.74 cents, up 40 points, with a two-session net gain of 107 points. Other contract months recorded gains ranging between 11 and 41 points.
ICE cotton futures extended gains on Tuesday, driven by strength in grain markets, delayed US cotton planting, and a weaker US dollar.
July and December 2025 contracts rose by 0.48 and 0.40 cents, respectively.
USDA reported planting progress at 40 per cent, below the five-year average.
Market sentiment was also shaped by trade tariff uncertainty and short covering.
The US dollar weakened following cautious remarks from Federal Reserve officials, making cotton cheaper for buyers using other currencies.
Trading volume for the day reached 32,117 contracts, compared to 36,852 contracts cleared on Monday. ICE-certified deliverable cotton stocks rose to 36,366 bales as of May 19, up from 34,153 bales the previous day.
Cotton prices also drew support from firm grain markets, especially wheat futures, which climbed to a two-week high. Wheat prices rose due to the weaker US dollar and an unexpected downgrade in US wheat crop ratings, prompting short covering.
According to USDA’s weekly report, US cotton planting stood at 40 per cent as of May 18, trailing the five-year average of 43 per cent. Planting was at 28 per cent the previous week and 42 per cent during the same period last year.
Market sentiment was further impacted by trade tariff uncertainty, as US Treasury Secretary Jeff Bessant reiterated the possibility of tariff measures.
The market’s consecutive gains are notable, as the front-month contract had not posted back-to-back increases in over two weeks. Overall, cotton futures drew momentum from a combination of grain market strength, planting delays, a soft dollar, and short-covering activity.
At present, ICE cotton for July 2025 is trading at 66.01 cents per pound (down 0.11 cent), cash cotton at 64.37 cents (up 0.48 cent), the October 2025 contract at 68.62 cents (up 0.30 cent), the December 2025 contract at 68.62 cents (down 0.12 cent), the March 2026 contract at 69.99 cents per pound (down 0.11 cent), and the May 2026 contract at 71.16 cents (up 0.11 cent). A few contracts remained at their previous closing levels, with no trading recorded today.
Fibre2Fashion News Desk (KUL)