ICE cotton declines further on weaker US exports, bearish commodity

16 May '25

2 min read

ICE cotton declines further on weaker US exports, bearish commodity

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Insights

ICE cotton futures extended losses on Thursday, with the July 2025 contract hitting a one-month low at 65.43 cents per pound.
Weak US export sales, favourable weather in West Texas, and bearish financial markets pressured prices.
USDA data showed new crop sales down 9 per cent week-on-week, with minimal demand from China.
Lower crude oil prices also impacted cotton competitiveness against polyester.

ICE cotton futures continued to decline on Thursday. The most active July contract slipped to a one-month low under pressure from weak export sales of next season’s US cotton. Favourable weather conditions in West Texas and bearish momentum from commodity and financial markets also dampened sentiment in the cotton market.

The ICE cotton July 2025 contract settled at 65.43 cents per pound (0.453 kg), down 0.05 cent from the previous day. The contract declined in seven of the last eight trading sessions, recording a net loss of 299 points. The December 2025 contract settled at 68.17 cents, down 7 points, with an eight-session net loss of 180 points. Other contract months ended up to 12 points higher, indicating mild recovery expectations beyond May 2026 contracts.

The trading volume for the day was 39,811 contracts, with 44,173 contracts cleared the previous day, reflecting moderate market activity amid declining price trends. Certified ICE stocks remained unchanged at 33,100 bales, with zero bales awaiting USDA review, indicating no fresh delivery interest and stable warehouse levels.

According to the USDA weekly export sales report for the week ending May 8, new crop (2025–26) net sales were only 34,200 bales, down 9 per cent week-on-week, highlighting the lack of forward demand. Only 3,300 bales were shipped to mainland China, reflecting ongoing demand softness from key destinations.

External markets added downside pressure. Brent crude oil fell over 2 per cent on expectations of returning Iranian supply, reducing polyester costs and competitiveness against cotton. The Dow Jones and S&P 500 also declined, weakening overall investor sentiment.

In agricultural commodities, Chicago soybeans dropped more than 2 per cent, weighed down by favourable weather and easing supply fears, while wheat and corn posted slight gains, offering minimal cross-commodity support for cotton futures.

At present, ICE cotton for July 2025 is trading at 65.54 cents per pound (up 0.11 cent), cash cotton at 63.68 cents (down 0.05 cent), the October 2025 contract at 68.55 cents (up 0.28 cent), the December 2025 contract at 68.24 cents (up 0.06 cent), the March 2026 contract at 69.49 cents per pound (up 0.11 cent), and the May 2026 contract at 70.53 cents (up 0.08 cent). A few contracts remained at their previous closing levels, with no trading recorded today.

Fibre2Fashion News Desk (KUL)

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