Tue Aug 5,
ICE cotton futures rebounded on Monday after a sharp fall last week. Weakness in the US dollar supported cotton prices, as it made purchases cheaper for overseas buyers. Rising commodity and equity markets also lent support to US cotton, with US stocks having posted remarkable gains in the previous session.
ICE’s most active December 2025 contract settled at 66.64 cents per pound (0.453 kg), up 0.28 cent. The contract lost 187 points, or 2.8 per cent, last week. Other contracts registered gains between 14 and 29 points.
Insights
ICE cotton futures rebounded on Monday, supported by a weaker US dollar and broader gains in commodities and equities.
The December 2025 contract rose 0.28 cent to 66.64 cents per pound after a steep fall last week.
However, trading volumes dipped.
USDA data showed stable crop conditions, while cash cotton and other forward contracts remained mostly unchanged or slightly lower.
The US dollar weakened, making dollar-denominated cotton cheaper for international buyers and helping revive some demand interest in futures.
Total volume traded on Monday was 41,845 contracts, compared to 55,382 contracts cleared the previous Friday, indicating reduced trading activity at the start of the week. As of August 1, the ICE deliverable No. 2 cotton contract inventory stood at 21,617 bales, unchanged from the previous day.
According to the CFTC report dated July 29, speculators increased their net short positions in ICE cotton futures and options by 1,467 contracts, bringing total net shorts to 52,972 contracts.
As per the USDA’s weekly crop progress report for August 3, 55 per cent of the US cotton crop was rated in good to excellent condition, unchanged from the prior week and significantly better than the 45 per cent reported in the same week last year.
Chicago wheat futures saw a modest rebound as harvest activity accelerated in the Northern Hemisphere, boosting global supply expectations and attracting some bargain buying.
US stock indexes posted their biggest one-day percentage gains since May 27, driven by dip-buying after the previous session’s sell-off and rising hopes of a September interest rate cut following weaker-than-expected jobs data.
Improved sentiment in commodities and equities slightly supported the cotton market, helping it stabilise after the recent sell-off.
Currently, ICE cotton for December 2025 is trading at 66.60 cents per pound (down 0.04 cent), cash cotton at 63.31 cents (down 1.05 cent), the October 2025 contract at 64.56 cents (unchanged), the March 2026 contract at 67.93 cents (down 0.05 cent), the May 2026 contract at 69.07 cents (down 0.06 cent) and the July 2026 contract at 69.94 cents (down 0.06 cent). A few contracts remained at their previous closing levels, with no trading recorded today.(Source:www.fibre2fashion.com)