Yesterday, the ICE cotton December contract settled at 69.34 cents per pound (0.453 kg), up 0.66 cents. The contract jumped to its highest level since August 12.
The US dollar index continued to decrease and touched a seven-month low below the level of 102. Weakness in the dollar index made cotton purchases attractive for foreign buyers. However, crude oil noted a bearish tone, which limited cotton gains.
The trading volume for the day was 29,751 contracts, while 37,982 contracts were cleared the previous day. Open interest decreased by 996 contracts, starting the day at 232,280 contracts. December open interest dropped by 2,107 contracts, with December open interest beginning the day at 151,785 contracts. According to ICE data, the certified stock levels remained unchanged at 12,767 bales.
According to the US Department of Agriculture (USDA), the quality rate of US cotton dropped to 42 per cent as of August 18, 2024, down from 46 per cent the previous week, but still better than 33 per cent in the same period last year. The cotton crop in the Delta region remains relatively healthy, but West Texas is facing a severe drought that is negatively affecting crop health.
Traders are still facing weak demand despite crop uncertainties and the economic outlook in the coming days.
Currently, ICE cotton for December 2024 is being traded at 69.36 cents per pound, up 0.02 cents. Cash cotton is traded at 64.30 cents (up 0.82 cents), the October contract at 68.82 cents (up 0.02 cents), the March 2025 contract at 70.78 cents per pound (up 0.10 cents), the May 2025 contract at 71.76 cents (up 0.55 cents), and the July 2025 contract at 72.25 cents (up 0.15 cents). A few contracts remained at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)