According to trade analysts, Yesterday ICE cotton December contract settled at 70.87 cents per pound (0.453 kg), down by 0.06 cents. March 2025 contract was higher 0.01 cents to reach 72.74 cents.

Dollar index dropped significantly and touched a new two months low. Fed rate cut expectations improved as US consumer price index eased. Lower dollar helped cotton prices to get positive tone. Crude oil prices rose further on second consecutive day. Brent crude oil closed above $85 per barrel which also helped cotton prices to remain stable.

ICE’s deliverable No. 2 cotton futures inventory was at 41,858 bales, down from 53,790 bales. Intraday price increased due to cancellation of 11,932 bales from ICE’s certified inventory.

US cotton exports were noted at 160,700 bales for week ending July 4, a 9 per cent decrease from the previous week and an 8 per cent decrease from the four-week average. Of the exports, 64,800 bales were shipped to mainland China.

USDA released the drought conditions report, which suggests that cotton drought area dropped by 1 per cent to 18 per cent after Beryl cyclone and there is further possibility of decline as good rains are forecast in Texas plains. Traders are waiting for USDA WASDE report due today evening for more information about world cotton demand and supply chain.

On Friday, ICE cotton for December 2024 was traded at 70.87 cents per pound with no change. Cash cotton traded at 63.56 cents (down 0.27 cents), the October contract at 69.07 cents (down 0.27 cents), the March 2025 contract at 72.74 cents per pound (Nil), the May 2025 contract at 74.14 cents (down 0.03 cents), and the July 2025 contract at 75.23 cents (down 0.06 cents).

Fibre2Fashion News Desk (KUL)