ICE cotton futures climbed to a one-week high, supported by a weaker US dollar, strong short covering, and firmer crude oil prices.
December 2025 contract settled at 68.01 cents/lb, up 0.59 cent, after touching a session high of 68.30 cents, the strongest since Aug 13. It marked the contract’s third straight weekly gain. Other near-term contracts rose 32–64 points, while long-dated May and July 2028 contracts eased.
The US dollar index slipped to a one-week low after Fed Chair Jerome Powell signaled a possible September rate cut, making US cotton more attractive to overseas buyers. Crude oil gains also lent support, as higher oil prices raise polyester costs, indirectly boosting cotton demand.
Trading volume jumped to 36,086 contracts from 26,215 the day before, while ICE deliverable cotton stocks fell to 15,474 packages (from 16,006), indicating tightening supply. Technical outlook turned bullish, with key resistance at 68–69.50 cents. CBOT soybeans also hit a two-month high on strong export demand.
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