Yesterday, the ICE cotton December contract settled at 69.48 cents per pound (0.453 kg), down 1.14 cents. It hit its lowest level since November 2020 at 68.72 cents. The March 2025 contract was lower by 1.15 cents, reaching 71.36 cents.

According to trade analysts, the dollar index gained 0.2 per cent, making cotton purchases more expensive for foreign buyers. Falling crude oil prices also dented cotton prices. US cotton has yet to see a bottom line. Growing expectations of a ceasefire in Gaza and demand concerns caused a decline in crude oil prices. However, the potential US Fed rate cut in September and supply threats from wildfires in Canada offset the negative factors of crude oil.

The trading volume for the session was notably active, with 37,135 contracts traded, the highest this month. The previous day saw 21,110 contracts cleared. Total open interest has increased for 14 consecutive sessions, bringing the total to 221,016 contracts. Certified cotton stocks began at 38,466 bales, down by 1,674 bales in decerts.

Improving growing conditions for US cotton and stagnant demand have pressured futures, with traders waiting for the US cotton export sales report.

On Wednesday, ICE cotton for December 2024 was traded at 68.68 cents per pound, down 0.80 cents. Cash cotton traded at 63.63 cents (down 2.10 cents), the October contract at 67.95 cents (down 0.08 cents), the March 2025 contract at 70.59 cents per pound (down 0.76 cents), the May 2025 contract at 72.07 cents (down 0.75 cents), and the July 2025 contract at 73.17 cents (down 0.70 cents). A few contracts remained at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)