ICE cotton futures rebound strongly on Friday, driven by hopes of potential trade agreements that could mitigate trade tensions. Rising stock markets and increased soybean prices provided additional support to US cotton futures. Despite the sharp rally, US cotton futures ended the week with an overall decline.
The ICE cotton July 2025 contract closed at 68.41 cents per pound (equivalent to 0.453 kg), marking a rise of 2.75 cents (4.2 percent) from the previous session. However, on a weekly basis, the contract registered a 0.6 percent loss.
The sharp recovery in cotton prices was fueled by expectations of a possible trade deal. Improved stock market performance and strong soybean prices also played a role in boosting ICE cotton futures rebound.
According to market analysts, the rally in stock markets and strength in soybean prices were key factors in supporting cotton prices. On the same day, US stock markets ended higher, earning their second consecutive weekly gain. This upward momentum was propelled by solid economic data and renewed optimism surrounding reduced trade tensions.
From a weather perspective, the US Department of Agriculture’s (USDA) Office of the Chief Economist (OCE) released an agricultural drought report based on the US Drought Monitor map dated Thursday. The USDA reported that as of the week ending April 29, approximately 21 percent of US cotton-producing regions were affected by drought, a figure unchanged from the prior week.
ICE cotton for July 2025 settled at 68.41 cents per pound, reflecting a gain of 2.75 cents. Other contracts also showed positive movement: cash cotton at 66.66 cents (up 2.75 cents), May 2025 at 70.18 cents (up 4.57 cents), October 2025 at 69.91 cents (up 2.59 cents), December 2025 at 69.71 cents (up 2.28 cents), and March 2026 at 70.85 cents per pound (up 2.20 cents). The strong performance of cotton contracts further emphasized the ICE cotton futures rebound.
