According to trade analysts, the US cotton July contract settled 92 points higher at 72.73 cents per pound (0.453 kg). The December contract settled up 84 points at 72.43 cents on Tuesday.

The dollar index was slightly higher yesterday, settling again above the 105 level, which limited cotton gains. Crude oil experienced a short rally, which helped cotton prices rise. The energy product soared around 5 per cent recently.

The cotton market continuously enjoyed good volumes. ICE Cotton Volume was 69,380 contracts yesterday, with 73,369 contracts cleared. Certified stocks in the ICE cotton exchange began today at 133,127 bales, up 660 bales in new certifications. There were 5,002 bales awaiting review.

Currently, the US cotton crop is enjoying very favourable conditions for growth. The weather is supportive except for a few pockets in the Texas region. As of the week of June 9, the Excellent/Good conditions of US cotton were 56 per cent, which was 7 per cent higher than the same period last year. The planting rate was 80 per cent, up by 2 percentage points. The budding rate was 14 per cent, 4 per cent higher than last year.

Chinese demand was performing better for US cotton exports, while exports to other markets were average. Traders are waiting for the USDA’s WASDE report due today and the US Export Sales Summary tomorrow before taking new positions.

On Wednesday, ICE cotton for July 2024 was traded 0.33 cents lower at 72.40 cents per pound. Cash cotton was traded at 68.98 cents (up 0.92 cents), the October (new crop) contract at 73.22 cents (up 0.36 cents), the December 2024 contract at 72.25 cents (down 0.18 cents), the March 2025 contract at 73.71 cents per pound (down 0.17 cents), and the May 2025 contract at 75.69 cents (up 0.34 cents). Few contracts were seen at the level of the last closing as there was trading noted today.

Fibre2Fashion News Desk (KUL)