According to trade analysts, US cotton July contract settled 96 points higher at 74.44 cents per pound (0.453 kg). December contract settled flat at 73.51 cents on Wednesday.
ICE cotton stabilised after previous losses, gaining on short covering and technical buying.
The US July contract rose 96 points to 74.44 cents per pound, while the December contract remained flat at 73.51 cents.
The market awaited the US cotton export sales report and next week’s WASDE report.
Trading volume was slow, with 45,272 contracts.
Dollar index was slightly higher which limited cotton gains. Crude oil was stable which helped cotton recover from the lower levels.
Yesterday, the trading volume was relatively slow as traders were waiting for some triggers. Finally, the trading volume was noted as 45,272 contracts in last session. The cleared volume was significantly higher at 64,425 contracts on the previous day. Certified stocks began the day at 127,990 bales, marking an increase of 1,276 bales due to new certifications. There were 3,185 bales awaiting review.
Currently weather is favourable for US cotton crop. The demand was slow, and traders were waiting for USDA export sales report. WASDE report is also due in the next week for more information about demand and supply scenario.
On Thursday, ICE cotton July 2024 was traded 0.20 cent lower at 74.24 cent per pound. Cash cotton was traded at 70.69 cent (up 0.96 cent), October (new crop) contract 75.13 cents (up 0.40 cent), December 2024 contract 73.76 cents (up 0.25 cent), March 2025 75.50 cents per pound (up 0.21 cent) and May 2025 77.30 cents (up 0.43 cent).
Fibre2Fashion News Desk (KUL)