ICE cotton futures fell on Monday following a recent peak, influenced by declining crude oil prices and weakness in the financial markets that pressured U.S. cotton prices. Analysts noted that external factors, such as a significant drop in stock markets triggered by a heated exchange between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell, added to the downward pressure on cotton.
The ICE cotton contract for July 2025 closed at 66.82 cents per pound (0.453 kg), down 0.31 cent from the previous day, after reaching a session high of 67.40 cents—the highest level since April 11. The December contract settled at 68.30 cents, down 0.14 cent, while other contracts experienced losses ranging from 11 to 55 points.
Despite a weaker dollar and strong export sales from the previous week, cotton prices continued to decline. Typically, a weaker dollar makes cotton more affordable for international buyers; however, crude oil prices dropped by over 2% due to progress in U.S.-Iran negotiations and concerns about decreased fuel demand resulting from economic challenges and tariffs. Lower oil prices also make polyester, a synthetic alternative to cotton, cheaper to produce.
Trading volume on Monday reached 36,289 contracts, an increase from the 33,530 contracts cleared on Thursday.
U.S. stock markets experienced a sharp decline after President Trump escalated his criticism of Powell, raising concerns about the independence of the Fed. Trump reiterated his call for the Fed to lower interest rates.
Additional selling pressure resulted from rollover activity as the First Notice Day for the May contract approaches on Thursday.
After market close, the USDA reported that U.S. cotton planting progress had reached 11% as of April 20, 2025—up from 5% the previous week and consistent with both last year’s figures and the five-year average.
In the latest trades, ICE cotton for May 2025 was priced at 65.48 cents per pound (down 0.29 cent). Cash cotton was quoted at 65.07 cents (down 0.31 cent). The July 2025 contract was at 66.51 cents (down 0.31 cent), the October 2025 contract at 68.71 cents (down 0.09 cent), the December 2025 contract at 67.97 cents (down 0.33 cent), and the March 2026 contract at 69.09 cents per pound (down 0.34 cent). Several contracts remained at previous closing levels, with no trades recorded today.
