ICE cotton futures posted a strong rally on Tuesday, with contracts closing 145 to 159 points higher. Crude oil prices rose by another $1.76 per barrel, while the U.S. Dollar Index gained 0.254 points.

According to Monday's Crop Progress report, 73% of the U.S. cotton crop had reached the squaring stage by Sunday, 1 percentage point ahead of the normal pace. Around 32% of the crop had begun setting bolls, matching the five-year average. The good-to-excellent crop rating improved by 1 percentage point to 45%, while the Brugler500 index increased by 1 point to 332. Crop conditions in Texas declined by 2 points, while Georgia remained unchanged.

The Cotlook A Index fell by 75 points to 87.65 cents per pound on July 20. ICE certified cotton stocks declined by 1,038 bales to 97,800 bales. Meanwhile, the Adjusted World Price (AWP) increased by 3.52 cents last week to 65.37 cents per pound.