Yesterday, the ICE cotton December contract settled at 67.78 cents per pound (0.453 kg), down 0.47 cent. Earlier, it breached a major support level of 67.5 cents and fell below 67 cents, marking a four-year low.

Yesterday, global equity markets also saw a steep decline. Crude oil was down, leading to heavy selling of cotton. The dollar index significantly dropped to trade near the 102 level, which was a major support point. This drop could provide good opportunities for foreign buyers to purchase cotton at lower levels. Crude oil futures also fell due to the decline in equities, but the fall in crude oil was limited by concerns about a wider war in the Middle East.

Yesterday, the trading volume was 38,580 contracts, slightly up from the average, with 22,869 contracts cleared on Friday. Open interest stands at 229,737, a decrease of 538. According to ICE data, the inventory of ICE's deliverable No. 2 cotton futures contract was 18,991 bales. Certified stocks started the day at 18,991 bales, down 352 bales due to decertifications on August 2.

The recent upheaval in Bangladesh may impact global cotton demand and supply dynamics, as it is one of the most important cotton-consuming markets in the world. Traders are closely monitoring developments.

On Tuesday, ICE cotton for December 2024 was traded at 67.54 cents per pound, down 0.24 cent. Cash cotton settled at 62.05 cents (down 0.63 cent), the October contract at 66.64 cents (up 0.09 cent), the March 2025 contract at 69.16 cents per pound (down 0.26 cent), the May 2025 contract at 70.42 cents (down 0.25 cent), and the July 2025 contract at 71.57 cents (down 0.07 cent). A few contracts remained at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)