ICE cotton futures rebounded on Monday as a weaker US dollar and firmer crude oil prices supported buying interest. The December 2025 contract settled at 66.21 cents per pound, up 0.18 cent, while open interest rose for the 40th time in 47 sessions.
The softer dollar boosted the competitiveness of US cotton overseas, making it a more attractive purchase for international buyers. Meanwhile, NYMEX crude oil futures also gained, partly recovering from last week’s losses. OPEC+ announced a modest output increase, and markets weighed the likelihood of further sanctions on Russian crude. Higher oil prices pushed up polyester costs—a substitute for cotton—thus indirectly supporting cotton demand.
The US Dollar Index fell 0.4% to 97.51 following a weaker-than-expected jobs report, reinforcing expectations of a Federal Reserve rate cut in September. The index had already declined more than 0.5% on Friday, amplifying the positive effect on cotton exports.
On the supply side, USDA’s latest crop progress report rated the overall US cotton crop condition at 54% good-to-excellent, with harvest progress at 8%, compared to 51% and 7% respectively during the same period last year. While the crop outlook remains steady, overseas buyers continued to favor Brazilian and Australian cotton over US supplies, adding a competitive challenge for American growers.
Overall, cotton futures found support from currency and energy markets, but trade competition and global demand trends remain key factors to watch in the weeks ahead.
