Yesterday, the ICE cotton December contract settled at 68.99 cents per pound (0.453 kg), down 0.56 cents. The contract had touched a one-week high of 70.20 cents but encountered selling pressure at the 70-cent level.
Following rising tensions in the Middle East, crude oil prices rose by 3 per cent, making the polyester value chain more expensive. However, US cotton ignored this positive move. Ahead of the Federal Reserve meeting, the dollar index fell by 0.4 per cent, making commodities, including cotton, cheaper for foreign buyers. Yet, this also failed to support cotton futures, according to analysts.
The trading volume exceeded 28,000 lots, and the pace of trade remained stable. ICE data showed that the deliverable No. 2 cotton futures contract inventory remained steady at 28,745 bales as of July 30.
China announced the issuance of import quotas with preferential tariff rates for 2024, including 200,000 tons of cotton import sliding tax quotas for processing trade. The market had expected higher numbers, which disappointed traders. However, the move by China could boost cotton imports and potentially support prices in the coming days.
On Thursday, ICE cotton for December 2024 traded at 68.80 cents per pound, down 0.19 cents. Cash cotton traded at 62.98 cents (down 0.17 cents), the October contract at 67.98 cents (down 0.17 cents), the March 2025 contract at 70.58 cents per pound (down 0.09 cents), the May 2025 contract at 71.84 cents (down 0.09 cents), and the July 2025 contract at 72.86 cents (down 0.02 cents). A few contracts remained at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)