Bullish Trend Continues for ICE Cotton Amid Dry Weather Concerns

ICE cotton futures saw mixed trading on Tuesday, but maintained a bullish trend. The front month contract declined due to profit-taking, settling at 85.41 cents after touching an intraday high of 86.33 cents.

The stronger US dollar exerted pressure on US cotton prices, making them more expensive for international buyers. However, the market remained influenced by dryness in key producing regions, such as the US' cotton belt.

USDA's latest report showed that only 38% of US cotton is in Good and Excellent condition, down from 40% last week and sharply below 55% a year ago. This has increased concern about final production.

The weather remains critical, with temperatures above 100°F reported in some regions and inadequate rainfall. Continued heat and dryness could further affect boll development and final yields.