According to trade analysts, yesterday, the ICE cotton December contract settled at 72.62 cents per pound (0.453 kg), down by 14 points. The March contract was down by 9 points at 73.96 cents per pound. The market experienced selling pressure above the 73-cent level.
ICE cotton prices fell due to a stronger dollar and cautious trading.
The December contract closed at 72.62 cents per pound, down 14 points.
Low trading volumes were observed post-holiday.
The USDA reported increased drought conditions in cotton areas, with urgent rain needed.
The July 2024 contract traded lower at 70.41 cents per pound.
The dollar index was stronger yesterday, settling above the 105 level, which hurt commodities, including cotton, for foreign buyers. A higher dollar discourages cotton buying in the US market. Crude oil remained almost stable and within a narrow range, so cotton prices were unaffected.
After the holiday, ICE cotton saw very thin volume. Yesterday, the volume was just 32,185 contracts, the lightest in four weeks. Certified stocks began the day at 136,187 bales, with 811 new certifications and 1,687 de-certifications. There were 4,442 bales awaiting review.
Yesterday, the USDA announced that drought conditions in cotton areas were at 9 per cent, one per cent higher than last week. Some pockets of Texas and Oklahoma are getting hot again; though it is not severe, rain is needed immediately to avoid damage to standing crops.
On Thursday, ICE cotton for July 2024 traded 0.44 cents lower at 70.41 cents per pound. Cash cotton traded at 65.88 cents (down 1.94 cents), the October (new crop) contract at 71.88 cents (down 1.94 cents), the December 2024 contract at 72.36 cents (down 0.26 cents), the March 2025 contract at 73.69 cents per pound (down 0.27 cents), and the May 2025 contract at 74.96 cents (down 0.328 cents). A few contracts were seen at the level of the last closing, with trading noted today.
Fibre2Fashion News Desk (KUL)