Yesterday, the ICE cotton December contract settled at 71.03 cents per pound (0.453 kg), down by 1.18 cents. It had reached a low of 70.60 cents, the lowest since September 18.
The US dollar index hit its highest level in over two months, settling above 103, which increased the cost of cotton for overseas buyers. Crude oil prices eased by nearly 2 per cent following OPEC’s forecast of slow global demand in 2024 and 2025. Weaker crude oil prices reduced the production cost of polyester fibre, which competes with cotton.
On Monday, the trading volume reached 40,394 contracts, while 46,012 contracts were cleared on Friday. Data from the ICE exchange as of October 11 indicated that the deliverable No. 2 cotton futures contract inventory remained stable at 265 bales.
The USDA's October WASDE report reduced global cotton trade estimates by more than 500,000 bales, primarily due to a downward revision in China’s import forecasts. As the world’s largest consumer of cotton, China's reduced imports are expected to further impact the market outlook.
Currently, ICE cotton for December 2024 is trading at 70.80 cents per pound, down by 0.23 cents. Cash cotton is being traded at 65.53 cents (down by 1.23 cents). The March 2025 contract is at 73.00 cents per pound (down by 0.19 cents), the May 2025 contract at 74.42 cents (down by 0.22 cents), the July 2025 contract at 75.31 cents (down by 0.25 cents), and the October 2025 contract at 73.82 cents (down by 0.92 cents). Some contracts remain at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)