Cotton Prices Dropping Tomorrow Due to Improved Weather Conditions
In the current market scenario, cotton futures are experiencing a modest decline, pressured by a strong US dollar and US tariffs on Indian goods. As of August 28, 2025, the December 2025 ICE cotton contract is trading around 66.68 to 66.69 cents per pound, slightly down by 0.03 cent, having lost about 133 points over the last three sessions.
The October 2025 cotton contract is at approximately 65.41 cents per pound, down 6 points, while the March 2026 contract is near 68.43 to 68.44 cents per pound, down 9 points. Other later contracts like May and July 2026 show small gains, indicating some upward support in longer-term pricing.
Key factors contributing to this trend include a strong US dollar making cotton more expensive for foreign buyers, reducing demand internationally. The recent US tariffs on Indian goods (25% on a broad range and 50% on Indian garments) are expected to lower Indian textile exports and dampen downstream cotton demand in India.
Weakness in grain markets is also discouraging fresh buying interest in cotton, while stable ICE deliverable stocks at 15,474 packages indicate no major inventory shifts currently. Market participants are awaiting the USDA weekly export sales report, which is expected to influence near-term price direction.
Over the past month, cotton prices have fallen overall by around 0.8% and about 6% year-over-year. Forecast models suggest cotton may trade lower towards the end of 2025 and into 2026, with projections near 59.88 cents per pound in 12 months.
It's important to note that this article does not contain any new information about the condition of the US cotton crop or the prices at which cotton was sold in the Monday online auction.
[1] Source: MarketWatch [2] Source: Reuters [3] Source: Bloomberg
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