Yesterday the ICE cotton December contract settled at 72.44 cents per pound (0.453 kg), up by 117 points. The March 2025 contract was higher by 116 points, reaching 74.26 cents, according to trade analysts.
Although the dollar index was strong and crude oil was weakened, both factors were negative for cotton trade.
The trading volume reached 35,306 contracts, the highest in the past two weeks, indicating increased market activity. Last Friday, 21,155 contracts were cleared, contributing to the overall high volume. Open interest has been increasing for eight consecutive sessions, adding back 8,344 contracts since the two-month low of 208,683 contracts on July 1.
Certified stock levels started the day at 41,122 bales, down 339 bales due to decertification, reflecting a slight decrease in available certified inventory.
The balance of the cotton crop for the 2023-24 season continued to be traded at low prices, reflecting a lack of demand for the remaining stocks. New crop sales are progressing, particularly for sellers with substantial positions secured at this point in the growing season, provided the basis is favourable.
On Tuesday, ICE cotton for December 2024 was traded at 72.37 cents per pound, down 0.07 cents. Cash cotton traded at 65.36 cents (up 1.94 cents), the October contract at 70.86 cents (up 1.94 cents), the March 2025 contract at 74.26 cents per pound (unchanged), the May 2025 contract at 75.61 cents (up 0.02 cents), and the July 2025 contract at 76.50 cents (down 0.06 cents). A few contracts remained at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)