Yesterday, the ICE cotton December contract settled at 69.81 cents per pound (0.453 kg), down 0.69 cents. On Tuesday, it had reached its highest level since August 26.
The dollar index was slightly down yesterday, showing a loss of nearly 0.4 per cent, which limited cotton losses. However, global crude oil prices fell by more than $1 per barrel due to demand concerns and mixed signals from oil-producing countries. Lower crude oil prices reduced polyester prices, putting pressure on cotton futures.
Yesterday, the trading volume was 32,402 contracts, compared to 39,568 contracts cleared the previous day. Open interest stood at 227,221 contracts, reflecting a decrease of 354 contracts. ICE data showed that, as of September 3, the inventory for deliverable No. 2 cotton futures contracts remained stable at 266 bales.
Following weather issues in India and Pakistan, traders expect demand to improve in the coming days. According to the latest FAS report, Indian cotton production is expected to decline. Markets are awaiting the cotton export sales report due today.
Currently, ICE cotton for December 2024 is trading at 69.98 cents per pound, up 0.17 cents. Cash cotton is trading at 65.39 cents (down 0.87 cents), the October contract at 69.89 cents (down 0.87 cents), the March 2025 contract at 71.70 cents per pound (up 0.16 cents), the May 2025 contract at 72.87 cents (up 0.12 cents), and the July 2025 contract at 72.57 cents (up 0.22 cents). A few contracts remained unchanged from the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)