Global cotton futures rallied strongly this past Friday, with ICE July 2025 cotton jumping 2.75 cents to settle at 68.41 cents per pound—after heavy short-covering and hopes for easing trade tensions between major economies. The uptick was further fueled by bullish sentiment in broader stock markets and rising soybean prices.
Analysts pointed to technical short‑covering as traders scrambled to cover bearish positions—this swift activity helped catalyze the rebound . Meanwhile, a weaker US dollar boosted the appeal of US cotton on the global market.
On the supply front, the USDA reported a persistent drought affecting 21% of US cotton-growing area as of April 29, keeping production concerns alive. Adding to market tension, forecasts estimate US planted cotton acreage to drop approximately 14–15% in 2025—a major reduction that may tighten avaialbilty.
Despite the strong one‑day rally, cotton futures still closed down slightly on a weekly basis, reflecting profit-taking after the initial surge.
In summary, cotton prices surged on Friday, reaching a multi-week high driven by short-covering, stock market strength, softer dollar and drought worries. Nevertheless, lingering weekly losses and ongoing weather and acreage challenges underscore continued volatility in the market outlook.
