ICE cotton futures extended their winning streak for the fourth consecutive session, supported by rising crude oil prices, renewed optimism in global equity markets, and expectations of improved U.S. cotton exports. The benchmark July 2025 cotton contract on ICE closed at 68.16 cents per pound, gaining 0.97 cents, while the May 2025 contract settled at 66.
98 cents, up nearly 0.98 cents. Overall, the market has climbed over 370 points across six sessions, signaling a bullish short-term trend.
A major driver behind this rally has been the strength in crude oil, which rose around 2% after U.S. inventory data showed smaller-than-expected builds in crude stockpiles. Since crude influences the price of synthetic fibers like polyester, higher oil prices often lend support to natural fibers such as cotton. The relatively stable U.S. dollar has had limited downside effect, keeping cotton exports competitive in global markets.
Analysts also point to speculative short-covering and improved investor sentiment across broader commodity and equity markets as additional tailwinds. With certified ICE cotton stocks unchanged at 14,488 bales and daily trading volume increasing to 44,777 contracts from 38,397 the previous day, market activity remains strong.
Looking ahead, traders are watching the upcoming USDA weekly export sales report for further cues. Some analysts believe the market may have already found a seasonal bottom and could trade sideways to higher in the near term, especially if export numbers confirm rising international demand.
