Yesterday, the ICE cotton December contract settled with heavy losses. It settled at 67.99 cents per pound (0.453 kg), down 0.91 cents. It had lost 271 points during the week. The contract has noticed a fall in six out of the last seven sessions, losing 408 points during this period.

According to trade analysts, the dollar index remained steady but did not provide any opportunity for foreign buyers. Crude oil futures lost 1.5 per cent yesterday. Crude oil remained under pressure due to lower demand from China and a potential ceasefire in Gaza, which could ease tensions in the Middle East and alleviate supply concerns. Cheaper crude oil led to a fall in polyester prices, a man-made alternative fibre to cotton.

Yesterday, the trading volume was 23,219 contracts, nearly matching the previous day's volume of 23,724 contracts, indicating consistent trading activity. Total open interest has been up for 17 consecutive sessions, adding 18,169 contracts over this period. Open interest began today at 226,852 contracts, up by 178 contracts from the previous day, reflecting increased market participation.

The US Commodity Futures Trading Commission (CFTC) on Friday showed that speculators had increased their net short positions in ICE cotton futures and options by 6,751 lots, bringing the total to 51,241 lots. In the ICE cotton exchange, certified stocks remained unchanged at 38,026 bales.

Overall, yesterday was a very hard day for most agricultural commodities. Favourable weather and subdued demand are hurting cotton markets, and traders are still not optimistic about demand improvements.

On Friday, ICE cotton for December 2024 settled at 67.99 cents per pound, down 0.99 cents. Cash cotton traded at 61.07 cents (down 1.14 cents), the October contract at 66.07 cents (down 1.14 cents), the March 2025 contract at 69.76 cents per pound (down 0.90 cents), the May 2025 contract at 71.13 cents (down 0.89 cents), and the July 2025 contract at 72.23 cents (down 0.87 cents).

Fibre2Fashion News Desk (KUL)