ICE Cotton Gains On Weak Dollar, Weather Concerns
ICE cotton futures extended gains, supported by a weaker US dollar and ongoing drought concerns in West Texas, a key growing region. The most active July 2026 contract settled at 79.36 cents per pound, up 0.22 cent.
A softer dollar, down 0.2 percent, made US cotton more attractive to global buyers, lending support to prices. At the same time, continued dry conditions in West Texas raised concerns over crop output, keeping market sentiment firm.
Rising crude oil prices, driven by stalled US–Iran talks and supply concerns around the Strait of Hormuz, also supported cotton by increasing polyester production costs, thereby improving cotton’s competitiveness.
In broader commodities, Chicago wheat touched a 10-month high, while corn and soybeans also advanced. Data from the CFTC showed speculators increasing their net long positions, reflecting a positive market bias.
However, seasonal demand weakness and slower export momentum are capping further upside. Despite strong export performance from Brazil, early signs of demand softening are emerging.
Overall, the market remains cautiously positive, supported by weather risks and currency movements, even as demand-side pressures limit sharper gains.
