Yesterday, the ICE cotton December contract settled at 70.38 cents per pound (0.453 kg), up 0.77 cents. The contract hit a high of 70.59 cents, the highest since 3 September. It has witnessed gains for three consecutive sessions.
The dollar index traded under pressure and settled with a loss of 0.3 per cent. This supported cotton prices, as cotton purchases became more lucrative for overseas buyers.
Crude oil gained nearly 2 per cent in the last session, which further supported cotton by increasing the cost of the polyester value chain.
The market is reacting to lower production estimates projected by USDA’s WASDE report for September. However, reductions in consumption estimates have dampened the rally to some extent.
Traders remain concerned about the potential impact of hurricanes on cotton crops near the Mississippi River, which has provided additional support to the market.
Data from ICE revealed that as of September 11, ICE’s deliverable No. 2 cotton futures contract inventory remained unchanged at 265 bales.
Currently, ICE cotton for December 2024 is trading at 70.33 cents per pound, down 0.05 cents. Cash cotton traded at 65.55 cents (up 0.74 cents), the October contract at 70.05 cents (up 0.74 cents), the March 2025 contract at 71.77 cents per pound (down 0.04 cents), the May 2025 contract at 72.86 cents (down 0.08 cents), and the July 2025 contract at 73.39 cents (down 0.13 cents). A few contracts remained at the previous closing levels, with no trading noted today.
Fibre2Fashion News Desk (KUL)