ICE cotton drops further on sluggish US economic outlook

ICE cotton futures declined for the fourth consecutive trading session on Wednesday. Weaker US economic data dampened market sentiment. The US GDP contracted ahead of potential reciprocal tariffs, and falling crude oil prices added further pressure on the natural fibre.

The ICE cotton July 2025 contract settled at 66.02 cents per pound (0.453 kg), down 0.47 cent from the previous day. The contract has lost 315 points over the last four sessions.

The December contract settled at 67.79 cents, down 0.48 cent on the day. Other contracts posted changes ranging from 58 points lower to 1 point higher.

NYMEX crude oil also declined after Saudi Arabia announced plans to increase production. Crude prices have recorded their biggest monthly fall in nearly three and a half years.

The decline in crude oil makes polyester—a substitute for cotton—even cheaper, further weighing on cotton prices.