ICE cotton prices experience mixed trends amid global demand concerns

03 Apr '24

2 min read

Pic: Adobe Stock

Insights

ICE cotton prices showed mixed results in trading sessions, with July 2024 contracts declining slightly while December 2024 and future contracts saw gains.
Concerns about global demand and economic uncertainty are impacting the market.
An analyst highlighted slow manufacturing and a shift towards gold as factors influencing cotton's appeal to investors.

ICE cotton continued to experience sluggish demand and price correction in the New York and London trading sessions. During the London session, the ICE cotton July 2024 contract eased by 0.09 cent to 91.62 cents per pound. A commodity analyst commented that negative sentiment in the manufacturing sector globally and a consistent rise in gold contributed to the easing of ICE cotton prices. ICE cotton May 2024 contract also eased 0.8 cent to 90.73 cents per pound.

However, the ICE cotton price for the December 2024 contract remained positive. It gained 0.2 cent to 84.47 cents per pound. Similarly, the March 2025 and December 2025 contracts were noted at 85.25 cents and 79.15 cents per pound, respectively, on Wednesday morning during the London session.

A commodity analyst based in New Delhi told Fibre2fashion, "There were concerns about the future demand for cotton globally. Economic uncertainty contributed to slow demand from various buyer segments. The macro scenario was also not supportive of ICE cotton."

He said that manufacturing activities are likely to remain slow, which was dampening market sentiments for ICE cotton. Gold prices are rising as investors are focusing on it. In such a scenario, equities and commodities lose their appeal for investors.

Fibre2Fashion News Desk (KUL)

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