Yesterday, ICE cotton December contract settled at 67.68 cents per pound (0.453 kg), down 0.19 cents. The contract traded between 68.31 and 67.51 cent yesterday.
ICE cotton saw a downward trend yesterday due to a stronger US dollar, which pressured cotton prices for foreign buyers.
The December contract settled at 67.68 cents/lb.
Traders are monitoring tropical storm Francine’s potential impact in cotton growing areas.
Today, cotton contracts rose, with December 2024 trading at 67.92 cents/lb, up 0.23 cents.
US dollar index gained 0.5 per cent and approached three-week high. The currency rose as investors expected US inflation data on higher side, which may force Federal Reserve to think of small cuts in policy interest rate. Higher dollar index put pressure on US cotton as it became expensive for foreign buyers. Recovery in crude oil was also negative factor for cotton futures. Crude oil prices recovered after five consecutive days of losses.
Yesterday, trading volume for the day was 28,007 contracts, while 37,979 contracts were cleared on Friday. ICE data, as of September 6, showed that deliverable No. 2 cotton futures contract inventory remained unchanged at 265 bales. There was no significant news or business to counter the market’s downward trend despite the US equities rebounding.
Traders are also watching tropical storm Francine, which could influence weather in major cotton-growing regions. The storm, formed in the Gulf of Mexico early Monday and is headed toward Louisiana, is expected to strengthen into a hurricane by Wednesday.
ICE cotton for December 2024 was traded at 67.92 cents per pound, up 0.23 cents. Cash cotton was traded at 63.04 cents per pound (up 0.42 cents), the October contract at 67.54 cents per pound (up 0.42 cents), the March 2025 contract at 69.67 cents per pound (up 0.21 cents), the May 2025 contract at 71.04 cents per pound (up 0.24 cents), and the July 2025 contract at 71.96 cents per pound (up 0.26 cents). A few contracts remained at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)