ICE cotton futures experienced a modest uptick on Monday, supported by a weaker US dollar that enhanced the competitiveness of US cotton in international markets. The December 2025 contract closed at 65.05 cents per pound, marking a 0.18-cent gain, while the July 2025 contract settled at 65.44 cents, up 0.08 cent. Despite this slight increase, the market remains rangebound, with limited momentum for a breakout.
The softer US dollar made cotton purchases more affordable for overseas buyers, providing some support to the market. However, trading volume decreased to 50,092 contracts, down from 65,985 contracts the previous day, indicating a slight reduction in market participation. Speculators increased their net short positions by 5,999 contracts to 67,935 contracts in the week ending June 10, suggesting a cautious outlook among traders.
On the supply side, slower US crop progress and a dip in Brazil’s cotton exports could influence future price movements. The USDA’s weekly export sales report for the week ending April 17 indicated that net sales for the current marketing year totaled 104,000 bales, down 49% from the previous week and 22% below the average of the last four weeks. Notably, net sales to mainland China declined by 5,300 tons, suggesting a reduced demand from a significant buyer.
While the weaker dollar provides some support, the cotton market remains in a consolidation phase. Traders are closely monitoring crop developments and global export trends for indications of future price movements. The market’s direction in the coming weeks will depend on factors such as crop conditions, export demand, and currency fluctuations.
