ICE cotton futures ease amid strong dollar and favorable weather in US

ICE cotton futures reversed their upward momentum, settling lower due to a stronger US dollar and favorable weather in key cotton-growing regions of the US. Texas, which has seen good rainfall, is expected to see better crop prospects, adding downward pressure to cotton prices.

The July 2025 contract closed at 68.80 cents per pound, down 0.37 cent from the previous session, after reaching an intraday high of 69.75 cents, the highest since December 2024. Despite this decline, the contract posted a weekly gain of 167 points.

Other contracts also showed mixed movements, with the December 2025 contract settling at 69.97 cents, down 0.40 cent, but recording a weekly gain of 153 points. The strengthening US dollar made US cotton more expensive for overseas buyers, dampening demand. Trading volume dropped to 35,260 contracts on Friday, down from 47,440 on Thursday.

ICE cotton data showed the deliverable No. 2 cotton futures inventory remained unchanged at 14,478 bales. While cotton isn’t part of major trade agreements, it remains sensitive to global market trends, influencing its price behavior.