Interviews
Yesterday, the December ICE cotton contract closed at 69.95 cents per pound (0.453 kg), up by 0.02 cents, with minimal fluctuations amid low trading volumes.
The US dollar index hovered near a two-week low, which supported cotton prices by making purchases more affordable for overseas buyers. Meanwhile, crude oil prices rose as a storm in the Gulf of Mexico threatened US production, and OPEC+ countries postponed a planned production increase to December. The resulting more than two per cent rise in crude oil prices benefitted the polyester value chain, a man-made alternative fibre to cotton.
The WASDE report, expected next Friday, is likely to reveal a slight decrease in cotton production.
According to ICE data as of November 4, deliverable inventory for ICE's No. 2 cotton futures contract was stable at 174 bales, showing no significant supply changes.
In other agricultural markets, Chicago Board of Trade (CBOT) futures for soybeans, corn, and wheat increased as investors awaited the Federal Reserve’s upcoming interest rate decision and USDA crop forecasts due later this week, which are expected to broadly impact commodity markets.
Currently, December 2024 ICE cotton is trading at 69.41 cents per pound (down 0.54 cents). Cash cotton traded at 65.70 cents (up 0.02 cents), with the March 2025 contract at 71.78 cents per pound (down 0.54 cents), May 2025 at 73.26 cents (down 0.47 cents), July 2025 at 74.74 cents (down 0.27 cents), and October 2025 at 74.16 cents (up 0.18 cents). A few contracts remained at their previous closing levels, with no new trading noted today.
Fibre2Fashion News Desk (KUL)
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