Price trend

According to data from the SunSirs commodity market analysis system, as of June 25, the domestic spot price for Grade 3128B lint cotton was quoted at 17,556 RMB/ton, down 0.54% from the beginning of the month.

As of the 25th, the closing price of the main Zhengzhou cotton contract stood at 15,685 RMB/ton, down 1.54% from the previous day.

ICE cotton futures fell sharply on the 24th. The settlement price for the December contract was 76.36 cents, down 247 points.

Market Analysis

The cotton market is characterized overall by a slump in overseas futures dragging down domestic prices, alongside weak spot market conditions. The sharp decline in US cotton prices is driven by multiple factors, including a strengthening US dollar, falling crude oil prices, and a lack of upward momentum. On the domestic front, supply-side factors—such as the healthy growth of the new cotton crop in Xinjiang and improved crop quality ratings for US cotton—are exerting downward pressure, while weak demand during the textile industry's off-season further suppresses prices.

Market Outlook

In the short term, absent any new bullish drivers, Zhengzhou cotton futures are likely to remain range-bound with a weak tone.

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