Yesterday, the ICE cotton December contract settled at 72.25 cents per pound, down by 0.02 cents. Crude oil prices also declined on Wednesday, following an increase in US crude oil inventories. However, concerns about potential supply disruptions from Iran lingered, with no signs of easing tensions in the Middle East. Lower crude oil prices typically make polyester, a substitute for cotton, more affordable.

The dollar index reached its highest level in nearly two months, making cotton purchases more expensive for overseas buyers.

The trading volume was 38,100 contracts, with 55,494 contracts cleared the previous day. Total open interest increased for the fourth consecutive session, rising by 1,437 contracts to reach 244,771—the highest since April 8, when it was 257,978 contracts.

The first notice day for the December contract is November 22, leaving 31 trading sessions. Open interest in December contracts started the day at 126,106 contracts, down by 346 contracts from the previous day. Certified stock levels remained unchanged at 265 bales.

Traders are now awaiting the USDA's weekly export sales report and the monthly supply and demand report, expecting a slight downward revision in production estimates. According to analysts, cotton demand remains weak, with minimal sales, and prices are predicted to stay within the 71-75 cent range for the near future.

Currently, ICE cotton for December 2024 was trading at 72.58 cents per pound, up 0.33 cents. Cash cotton was traded at 66.25 cents (down 0.02 cents). The March 2025 contract was at 74.70 cents per pound (up 0.34 cents), the May 2025 contract at 76.00 cents (up 0.30 cents), the July 2025 contract at 76.49 cents (down 0.04 cents), and the October 2025 contract at 74.66 cents (down 0.01 cent). Some contracts remained unchanged from the previous close, with no trading activity noted today.

Fibre2Fashion News Desk (KUL)