ICE cotton dips for fifth straight session as strong dollar, good US weather weigh on prices

ICE cotton futures fell for the fifth consecutive session last week, as improved weather conditions in Texas and a stronger US dollar outweighed positive export sales. The July 2025 cotton contract settled at 65.66 cents per pound, down 0.36 cent, losing a total of 351 points over the last five sessions. December settled at 67.43 cents, also down 0.36 cent. Other contracts showed mixed movement, ranging from 71 points lower to 1 point higher.

The US dollar index firmed last week, making American cotton less competitive for overseas buyers. Despite weekly export sales rising 4 per cent to 108,400 bales, the figure was still 21 per cent below the four-week average. Forward bookings for the 2025-26 season stood at 32,900 bales. Favourable weather in West Texas, marked by recent and forecast rainfall, boosted soil conditions and encouraged planting activity. Analysts reported near-perfect conditions last week, a marked improvement from earlier delays.

Trading volume dropped to 29,258 contracts the lowest since December 31, 2024 amid muted activity due to the May Day holiday in several countries, including China, which resumes trading on May 6. Market attention remains on US weather patterns and China's return, both expected to steer short-term price direction.