Yesterday, the ICE cotton December contract settled at 72.20 cents per pound (0.453 kg), rising by 1.21 cents. The contract has been on an upward trend for the past six sessions. On Monday, the US cotton December contract gained 1.7 per cent.

Crude oil on the NYMEX rose by nearly 2 per cent, partially recovering from a 7 per cent drop last week. Tensions in the Middle East, particularly concerns over potential supply disruptions, contributed to the rise, with the possibility that Israel may retaliate against Iran in the coming days.

The session saw a total of 49,945 contracts traded, marking the highest volume in the past nine sessions. In comparison, 32,232 contracts were cleared on Friday. ICE’s deliverable No. 2 cotton futures contract inventory remained unchanged at 174 bales as of October 18.

According to the USDA’s weekly crop progress report, for the week ending October 20, 2024, 37 per cent of US cotton was rated good to excellent, an improvement from 34 per cent the previous week and 29 per cent in the same period last year. The US cotton harvest reached 44 per cent, up from 34 per cent the previous week, 39 per cent last year, and higher than the five-year average of 38 per cent. Boll setting progressed to 94 per cent, compared to 88 per cent the previous week, 89 per cent last year, and a five-year average of 91 per cent.

Market analysts expect cotton to trade in the 70-75 cent range unless more bullish developments emerge.

Currently, ICE cotton for December 2024 is trading at 72.25 cents per pound, up by 0.05 cent. Cash cotton is being traded at 67.20 cents, up by 1.21 cent. The March 2025 contract is at 74.15 cents per pound, up by 0.03 cent, while the May 2025 contract is at 75.43 cents, down by 0.07 cent. The July 2025 contract stands at 76.38 cents, down by 0.06 cent, and the October 2025 contract is at 74.71 cents, up by 0.77 cent. A few contracts remained unchanged from the last closing, with no trading activity noted today.

Fibre2Fashion News Desk (KUL)