Sat Jun 7,
ICE cotton futures closed higher on Saturday due to a weaker US dollar and reduced concerns following recent talks between the US and Chinese Presidents regarding tariffs. Demand from China and Pakistan for US cotton may support the market. However, favourable weather conditions in the US and India have raised prospects for a better crop.
The ICE cotton July 2025 contract settled at 65.62 cents per pound (0.453 kg), up 0.26 cent from the previous day. The contract recorded a weekly gain of 56 points. The December 2025 contract settled at 68.21 cents, up 23 points. Other contracts also gained in the last trading session of the week.
Insights
ICE cotton futures rose on Saturday, supported by a weaker US dollar and easing tariff concerns after talks between the US and Chinese Presidents.
The July 2025 contract settled at 65.62 cents per pound.
Although demand remained light to moderate, export shipments rose 15 per cent week-on-week.
Favourable weather in US and India lifted crop outlooks, while limited old crop supply constrained sales.
The US dollar index traded with weaker sentiment. Poor US economic indicators and a stronger Euro contributed to the dollar's weakness. A weaker US dollar encouraged buying of US cotton due to more attractive pricing in other currencies.
However, demand for US cotton was light to moderate, with spot trading reported only in West Texas, where both supply and demand were described as light. Modest US export net sales through May 29 were likely due to limited old-crop cotton supply rather than weak demand. Export shipments for 2024–25 remain above the weekly average needed to meet the USDA's target of 11.1 million bales.
According to the USDA's weekly export sales report, US cotton shipments reached 316,100 bales for the week ending May 29, up 15 per cent from the previous week and 1 per cent above the average of the prior four weeks.
Presently, ICE cotton for July 2025 has settled at 65.62 cents per pound (up 0.26 cent), cash cotton at 63.87 cents (up 0.26 cent), the October 2025 contract at 67.44 cents (up 0.16 cent), the December 2025 contract at 68.21 cents (up 0.23 cent), the March 2026 contract at 69.69 cents per pound (up 0.26 cent), and the May 2026 contract at 70.79 cents (up 0.34 cent).