Yesterday the ICE cotton December contract settled at 72.10 cents per pound (0.453 kg), up by 70 points. The March 2025 contract was higher by 61 points, reaching 73.92 cents.

The US dollar index was down by 0.5 per cent due to early Fed rate cut prospects. A weaker dollar makes cotton purchases cheaper for foreign buyers. Crude oil prices were stronger after US inventory data was released. Higher crude oil prices also supported cotton, as the polyester value chain became more expensive, according to trade analysts.

The trading volume for the day was 24,831 contracts, while 26,666 contracts were cleared the previous day. Total open interest has been on an upward trajectory for 10 consecutive sessions, adding 9,938 contracts since the two-month low on July 1. Open interest now stands at 218,621 contracts.

US weather conditions have generally been favourable for most cotton-growing regions. Rain forecast in areas from Texas to the east are expected to benefit the crop. However, extremely high temperatures west of Texas, which had slightly eased, are anticipated to rise again in the coming week. The impact of these fluctuating temperatures on cotton yields remains uncertain.

Certified cotton stocks have remained unchanged at 41,122 bales. There has been no significant buying or selling of the crop in the ground, resulting in relatively stagnant market activity. The USDA Cotton Export Report will provide further insights into export demand and market dynamics.

On Thursday, ICE cotton for December 2024 was traded at 71.86 cents per pound, down 0.21 cent. Cash cotton traded at 65.62 cents (up 0.75 cent), the October contract at 71.12 cents (up 0.75 cent), the March 2025 contract at 73.69 cents per pound (down 0.23 cent), the May 2025 contract at 75.04 cents (down 0.23 cent), and the July 2025 contract at 75.94 cents (down 0.21 cent). A few contracts remained at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)