According to trade analysts, the ICE cotton December contract settled at 74.58 cents per pound (0.453 kg), down by 76 points. ICE cotton saw a downward trend after a brief rally in the early session.
The US dollar index decreased and settled with minor losses. As a result, cotton became cheaper for foreign buyers after the fall in the dollar.
Yesterday, the trading volume was slightly weak before the release of important data. Only 28,946 contracts were traded, which was slightly lower than the previous day's 33,036 contracts. The certified stock in the ICE cotton exchange dropped significantly to 48,812 bales, the lowest in over three months, down from a peak of 193,691 bales a month ago. This significant decline indicates that a shift in momentum is near.
Yesterday, the USDA also announced important data regarding drought conditions, which are increasing in cotton belts. According to the latest reports, around 16 per cent of cotton belts are in drought conditions, up 7 per cent from the last available report. If this adversity continues, cotton prices will be supported. The USDA’s plantation acreage report, due today, might not have an immediate impact on the market but is still a major point for future trends.
The major focus is now on export demand, and farmers are selling at higher levels. Any adverse weather conditions will have a major impact on cotton markets around the world.
On Friday, ICE cotton for December 2024 traded 0.32 cents higher at 74.90 cents per pound. Cash cotton traded at 67.91 cents (down 0.68 cents), the July 2024 contract at 72.02 cents (down 0.68 cents), the October contract at 74.23 cents (up 0.32 cents), the March 2025 contract at 76.31 cents per pound (up 0.32 cents), and the May 2025 contract at 77.28 cents (down 0.65 cents). A few contracts were seen at the level of the last closing, with no trading noted today.
Fibre2Fashion News Desk (KUL)