Yesterday, the ICE cotton December contract settled at 72.51 cents per pound (0.453 kg), up by 0.43 cents. The contract reached a high of 72.75 cents, its highest level since October 11. The December contract has gained in three of the last four sessions, appreciating by 175 points over this period.

The dollar index further strengthened and settled above 104 yesterday. A stronger dollar makes cotton purchases more expensive, thus limiting gains in US cotton.

The trading volume was 36,294 contracts, slightly down from the 38,600 contracts cleared the previous day. Data from ICE on October 22 confirmed that No. 2 cotton futures contract inventories remained unchanged at 174 bales.

According to market analysts, US cotton is receiving support from potential losses in Indian cotton production. Recent rains may further reduce production, which has already been impacted by lower acreage in various regions. India, a major cotton producer and consumer, may see reduced production, which could increase global demand for cotton.

The USDA’s crop progress report showed that 37 per cent of the US cotton crop is now in good-to-excellent condition, up from 34 per cent the previous week.

Traders are now awaiting the USDA’s weekly export sales report, which is expected to provide further guidance on market trends.

Currently, ICE cotton for December 2024 is trading at 72.46 cents per pound, down 0.05 cents. Cash cotton is trading at 67.51 cents (up 0.43 cents), the March 2025 contract at 74.39 cents per pound (down 0.14 cents), the May 2025 contract at 75.77 cents (down 0.09 cents), the July 2025 contract at 76.73 cents (down 0.05 cents), and the October 2025 contract at 75.23 cents (up 0.52 cents). Some contracts remain at their previous closing levels, with no trading observed today.

Fibre2Fashion News Desk (KUL)