Cotton Prices SURGE As US-China Trade Talks Heat Up—Is A Bigger Rally Coming?

The ICE cotton July 2025 contract closed at 65.99 cents per pound, up 0.37 cent from the previous day. It briefly touched 66.05 cents, the highest in over a week. December 2025 settled at 68.35 cents, rising 14 points.

But let’s not break out the confetti—cotton futures have been dancing in the same narrow range (64 to 66 cents) for more than three weeks.

So, what’s driving this mini rally?

A wave of optimism came from—surprise—renewed trade talks between the US and China. With two of the biggest global players back at the table, speculators found a reason to be slightly bullish. That, plus rising activity in the wider commodity market, gave ICE cotton a gentle nudge upward.

But for farmers, exporters, and anyone whose income sways with the cotton market, this feels more like a tease than a breakthrough. Prices haven’t really broken out, and traders are still playing the waiting game.

Volume speaks louder than price

Here’s what did make noise: trading volume jumped to 84,356 contracts on June 9. That’s almost 30% higher than the previous day. This kind of action usually means big players are repositioning ahead of something important—like the USDA’s WASDE report due later this week.

Think of it like this: everyone’s grabbing popcorn for a show that hasn’t started yet. The USDA’s report could shift the entire plot.

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Dollar stays firm, cotton shrugs

Normally, a strong US dollar would put pressure on cotton prices by making US exports pricier. But this time, cotton didn’t care. The dollar was steady, yet the cotton market moved more on global sentiment than strict supply-demand logic.

That says a lot. Right now, macroeconomics matter more than cotton fundamentals. No major supply issues, no weather shocks—just vibes, trade chatter, and guesses about what comes next.