ICE cotton futures experienced a slight decline on May 21, 2025, with the July 2025 contract settling at 66.07 cents per pound, down 0.05 cents. This movement was attributed to technical resistance and a lack of clear market direction.
Market sentiment was influenced by a combination of factors.
Crude oil prices eased due to concerns over Iranian supply issues and a surprise drop in U.S. crude inventories, adding mixed signals to the commodities market. Conversely, a weaker U.S. dollar against major currencies improved U.S. export competitiveness, providing some support to cotton prices. However, the overall impact was limited.
Trading volume was notably low, with only 26,661 contracts changing hands, marking the lowest daily volume of 2025. This indicates a cautious investor sentiment, with market participants awaiting clearer signals before making significant moves.
Additionally, the market is anticipating the upcoming USDA export data, which could provide insights into demand trends and influence future price movements.
The current market environment remains uncertain, with traders adopting a wait-and-see approach amid mixed economic indicators.
In summary, ICE cotton futures are facing resistance levels and mixed macroeconomic signals, leading to a subdued trading atmosphere. The market is likely to remain range-bound until clearer directional cues emerge.
