Fri July 11,
ICE cotton futures lost momentum after weaker US export sales data. Although US cotton had rebounded on Wednesday, it remained nearly flat on Thursday. Stronger grain markets provided some support, but cotton futures failed to gain traction. President Donald Trump continued to announce tariff hikes against several countries, and the tariff issue remained an uncomfortable factor influencing trade decisions.
ICE’s most active December 2025 contract settled at 67.73 cents per pound (0.453 kg), down 0.05 cent, reflecting minimal movement. Other cotton contracts closed mixed, with prices ranging from 10 points higher to 11 points lower.
Total trading volume on July 10 was 22,110 contracts, marking the lightest trading day of the year, down from 28,394 contracts traded on July 9.
Insights
ICE cotton futures dipped slightly on July 10 after weaker US export shipment data, despite a sharp rise in new sales.
Market sentiment remained cautious ahead of the USDA's July 12 WASDE report, expected to show higher US cotton production.
President Donald Trump's new tariffs on copper and over 20 countries added to trade uncertainty.
According to the USDA’s weekly export report for the week ending July 3, net US export sales for the 2024-25 season were 75,100 bales—a 217 per cent increase over the prior week and 55 per cent above the four-week average. However, actual exports (shipments) for the week totalled 240,900 bales, down 6 per cent from the previous week.
Market participants are now focused on the upcoming USDA WASDE report, due on July 12, which is expected to show higher US cotton production and may put further pressure on prices.
Analysts noted that the export data was not particularly strong. They cautioned that supply-side pressure could intensify if the USDA forecasts a larger harvest. Cumulative sales of both old and new crop cotton are currently at their lowest level in 10 years, raising concerns about overall demand.
Some support came from the grain complex, with wheat and corn futures rising. Wheat gained on tight Russian export supplies, while corn strengthened due to harvest-related pressures in the Northern Hemisphere. Analysts said that cotton remains cheap and that gains in wheat and corn are helping to provide some support to the cotton market.
As of July 9, ICE deliverable stocks for the No. 2 cotton futures contract stood at 35,347 bales, down from 37,989 bales on the previous trading day.
In macroeconomic developments, President Trump announced a 50 per cent tariff on all copper imports, effective August 1. He also announced reciprocal tariffs of up to 50 per cent on over 20 nations, including Brazil, Canada, Sri Lanka, the Philippines, Iraq, and Algeria.
Currently, ICE cotton for December 2025 is trading at 67.55 cents per pound (up 0.19 cent), cash cotton at 65 cents (down 0.11 cent), the October 2025 contract at 66.25 cents (down 0.11 cent), the March 2026 contract at 69.01 cents (up 0.18 cent), the May 2026 contract at 70.28 cents (up 0.16 cent), and the July 2026 contract at 71.07 cents (up 0.14 cent). A few contracts remained at their previous closing levels, with no trading recorded today.