Wed Jun 11,
Insights
ICE cotton futures fell on Tuesday as favourable weather in the US, particularly in West Texas, improved crop prospects and pressured prices.
The July 2025 contract dropped 0.57 cent to 65.42 cents/lb, while other contracts also declined.
Rollover activity added technical pressure ahead of expiry.
Trading volume surged to 99,170 contracts, and inventories increased, indicating ample supply.
ICE cotton futures slipped on Tuesday due to favourable weather in the US. Improved weather conditions have supported crop development and enhanced the production outlook. Although global cues remained positive, traders were cautious yesterday.
The ICE cotton July 2025 contract settled at 65.42 cents per pound (0.453 kg), down 0.57 cent from the previous day. The contract hit its highest level since June 3 during the session. It has remained within the 65-cent range for the fourth consecutive session, signalling persistent pressure on short-term prices. The December 2025 contract settled at 67.71 cents, down 64 points. Other contracts declined by 24 to 66 points, while the October contract dropped 120 points, primarily influenced by price pressure from both old crop (July) and new crop (December) contracts.
According to market analysts, West Texas received better-than-expected rainfall, which is bearish for cotton prices as it improves crop prospects. There was notable rollover activity, with traders moving out of the July contract into the December contract ahead of the nearby expiry, adding technical selling pressure.
Total trading volume on ICE reached 99,170 contracts, indicating elevated activity compared to typical sessions. Contracts cleared the previous day were reported at 84,356, reflecting continued strong participation and liquidity in the futures market. The average daily trading volume for last week was updated to 60,347 contracts, correcting a previously misreported figure of 55,276 contracts. ICE’s deliverable No. 2 cotton futures inventory rose to 53,351 bales as of June 9, up from 51,965 bales the previous trading day, suggesting adequate available stock.
Currently, ICE cotton for July 2025 is trading at 65.67 cents per pound (up 0.25 cent), cash cotton at 63.67 cents (down 0.57 cent), the October 2025 contract at 65.70 cents (down 1.20 cents), the December 2025 contract at 67.89 cents (up 0.18 cent), the March 2026 contract at 69.26 cents (up 0.20 cent), and the May 2026 contract at 70.33 cents (up 0.17 cent). A few contracts remained at their previous closing levels, with no trading recorded today.(Source: www.fibre2fashion.com)