Yesterday, the ICE cotton December contract settled at 69.55 cents per pound (0.453 kg), up 0.34 cents. Cotton futures continued to rise, with the December contract surpassing 70 cents for the first time in a week before settling slightly lower. It has gained 156 cents over the last two trading sessions.

According to trade analysts, the dollar index remained above 104. A stronger dollar made cotton purchases less attractive for foreign buyers. Crude oil prices were under pressure, easing down nearly 1.5 per cent, which made polyester, an alternative to cotton, cheaper.

The trading volume was moderate, with 28,985 contracts traded, compared to 24,607 contracts cleared the previous day. Total open interest reached 228,439 contracts, an increase of 318 contracts from the previous day. Certified stocks on the ICE cotton exchange remained unchanged at 28,745 bales.

Dry weather is forecast for West Texas over the next 10 days, which could further drive prices higher if it continues. Traders expect some resistance at 70 cents, but stronger resistance around 71.50 cents in the short term.

On Wednesday, ICE cotton for December 2024 traded at 69.44 cents per pound, down 0.11 cents. Cash cotton traded at 63.15 cents (up 0.64 cents), the October contract at 68.12 cents (down 0.03 cents), the March 2025 contract at 71.09 cents per pound (down 0.09 cents), the May 2025 contract at 72.40 cents (no change), and the July 2025 contract at 73.30 cents (down 0.03 cents). A few contracts remained at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)