Yesterday, the ICE cotton December contract settled at 73.44 cents per pound (0.453 kg), down by 0.08 cents. The contract traded within a range yesterday.

The dollar index was slightly higher, which was also a negative factor for US cotton. NYMEX crude oil futures closed lower on Monday due to weak economic data from the Eurozone and China. However, oil prices remain high, making polyester more expensive.

The trading volume was 41,590 contracts yesterday, compared to Friday’s higher volume of 55,158 contracts. Open interest stood at 232,086 contracts, reflecting a decrease of 969 contracts. Over the last four sessions, open interest has dropped by 4,603 contracts, though this decline has not fully offset the large increase of 7,125 contracts from the previous Monday.

ICE data showed that as of September 20, deliverable No. 2 cotton futures contracts remained at 265 bales.

A potential tropical cyclone, about 350 miles south-southeast of Cuba, is expected to develop into a hurricane. It may impact major cotton-growing areas in Alabama, Georgia, and Florida by Thursday, affecting the quality of cotton in the full boll stage.

The USDA’s weekly crop report indicated that US cotton quality declined to 37 per cent, down from 39 per cent the previous week, though still higher than the 30 per cent rate seen at the same time last year.

The US cotton harvest rate progressed to 14 per cent this week, compared to 10 per cent the previous week and 12 per cent during the same period last year.

Currently, ICE cotton for December 2024 is trading at 73.86 cents per pound, up 0.42 cents. Cash cotton was traded at 66.94 cents (down 0.08 cents), the October contract at 71.70 cents (down 0.51 cents), the March 2025 contract at 75.63 cents per pound (up 0.44 cents), the May 2025 contract at 76.72 cents (up 0.46 cents), and the July 2025 contract at 76.89 cents (up 0.17 cents). A few contracts remained at the same level as the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)