Wed, June 4, 2025,
Insights
ICE cotton futures declined slightly due to profit booking and a stronger US dollar, which made US cotton less attractive to international buyers.
Prices stayed within a tight trading range for the 14th straight session.
ICE cotton futures edged lower due to profit booking, following gains on Monday. A stronger US dollar also exerted additional pressure on US cotton, as a rising dollar makes cotton purchases more expensive for overseas buyers. The market extended its tight trading range for the fourteenth consecutive session, reflecting limited volatility.
USDA data showed slower planting progress and weaker crop conditions compared to last year.Rising deliverable stocks signalled sufficient supply.
The ICE cotton July 2025 contract settled at 66.05 cents per pound (0.453 kg), down 0.08 cent from the previous day. The December 2025 contract settled at 68.53 cents, down 16 points.
The strengthening of the US dollar on Tuesday added further downside pressure, making US cotton less attractive to international buyers.
Total trading volume on June 3 was 59,818 contracts. Cleared volume on June 2 stood at 71,718 contracts, indicating higher prior activity. ICE’s deliverable No. 2 cotton stock rose to 53,700 bales as of June 2, up from 43,006 bales on the previous trading day. The increase in deliverable stock indicates a comfortable short-term supply, contributing to the market’s cautious and range-bound tone.
Prices declined due to profit-taking, following Monday’s rally to a near one-week high. USDA’s crop progress report (as of June 1) showed cotton planting at 66 per cent, slightly below last year’s 68 per cent and the five-year average of 69 per cent. The report rated 49 per cent of the crop in good-to-excellent condition, significantly lower than 61 per cent during the same week last year.
Analysts noted that while crop progress and condition are weaker, the differences are relatively minor and unlikely to cause substantial market movement.
Presently, ICE cotton for July 2025 is being traded at 65.94 cents per pound (down 0.11 cent), cash cotton at 64.38 cents (unchanged), the October 2025 contract at 68.11 cents (up 0.02 cent), the December 2025 contract at 68.44 cents (down 0.09 cent), the March 2026 contract at 69.88 cents per pound (down 0.07 cent), and the May 2026 contract at 70.92 cents (down 0.04 cent). A few contracts remained at their previous closing levels, with no trading recorded today (Source: www.fibre2fashion.com).