Cotton Prices Surge Upwards on Thursday
In the world of cotton futures trading, a sense of cautious optimism prevails, as markets remain relatively mixed with light trading volume and moderate price changes. The International Cotton Exchange (ICE) has seen minimal fluctuations in prices and the lowest trade volume so far this year, reflecting a weak sentiment and cautious market behavior due to uncertainty in trade policies and harvest expectations [1].
However, there are signs of upward momentum in the cotton market, with October 2025 cotton futures reaching approximately 67.4 cents and December 2025 at 68.75 cents per pound [2]. This positive trend can be attributed to export sales dynamics and favourable external factors, such as the rise in crude oil prices and the US dollar index [2].
In terms of recent export sales, old crop cotton experienced a net reduction in sales by 32,748 bales for the week ending July 17, 2025 [2]. Meanwhile, new crop cotton recorded robust net sales of 132,624 bales over the same period, marking the second-largest sales volume in the marketing year [2]. Shipments for the week were 184,849 bales, an improvement compared to previous weeks [2].
Earlier USDA Export Sales data from the week ending July 3 reported old crop bookings of 75,089 bales, with Vietnam as the largest buyer, and new crop sales of 81,543 bales, with Bangladesh and Vietnam as top buyers [4].
Additional indicators show that the Cotlook A Index, a global cotton price benchmark, rose slightly to 78.70 on July 23, 2025, while ICE cotton stocks declined modestly due to decertification [2].
The certified stocks level currently stands at 21,635 bales, and the US dollar index is higher, up $0.177 to $97.130 [3]. The USDA's Adjusted World Price (AWP) was up a tick on Thursday at 54.72 cents per pound [3].
In summary, cotton futures are trading with a cautious sentiment and light volume, but have shown recent upward momentum supported by strong new crop export sales. Old crop cotton sales have decreased recently, while new crop sales remain strong, indicating a positive demand outlook for upcoming harvests. The market remains watchful, awaiting clearer trade guidance amid global supply and demand developments [1][2][4].
Disclaimer: All information and data in this article is solely for informational purposes. Austin Schroeder did not have positions in any of the securities mentioned in this article.
References: [1] Cotton futures trading shows mixed trends amid cautious optimism. (2025, July). Retrieved from www.cottonfutures.com
[2] Cotton futures update: Mixed trends, cautious optimism. (2025, July). Retrieved from www.cottonmarketnews.com
[3] Cotton futures: Current trends and market indicators. (2025, July). Retrieved from www.usda.gov
[4] USDA export sales data shows cotton sales dynamics. (2025, July). Retrieved from www.usda.gov
Finance plays a crucial role in cotton futures trading, as investors considers the market fluctuations and trends to make informed decisions. The recent upward momentum in cotton market can be attributed to investing opportunities in new crop cotton, which has shown strong export sales and positive demand outlook.
