ICE cotton rises on weaker dollar, strong export prospects

Yesterday, the ICE cotton March 2025 contract settled at 69.23 cents per pound (0.453 kg), up by 0.123 cents. The contract had reached an intraday low of 68.40 cents, its lowest level since 11 September. Analysts pointed out that the ‘first notice day’ on Friday for the March contract might temporarily exert downward pressure on prices, but market conditions are expected to improve in late November and December.

The dollar index slipped 0.1 per cent after hitting a one-year high last week, enhancing the competitiveness of US cotton for international buyers.

Trading volume reached 58,206 contracts, nearly equalling the previous session’s 58,726 contracts. Stocks of ICE No. 2 cotton futures contracts increased to 13,274 bales on November 18, up from 13,187 bales in the prior session.

Attention is now turning to the USDA's weekly export sales report, anticipated to show robust sales following the recent decline in cotton prices.

The USDA's crop progress report indicated that 77 per cent of the US cotton crop had been harvested as of November 17. This compares to 71 per cent the previous week, 74 per cent at the same time last year, and a five-year average of 72 per cent.

Market sentiment remains cautiously optimistic, bolstered by the weaker dollar and expectations of strong export sales.

As of now, ICE cotton for March 2025 is trading at 69.24 cents per pound (down 0.01 cent). Cash cotton settled at 65.25 cents (up 0.23 cent), the December 2024 contract at 66.78 cents per pound (down 0.11 cent), the May 2025 contract at 70.54 cents (up 0.07 cent), the July 2025 contract at 71.75 cents (up 0.07 cent), and the October 2025 contract at 70.61 cents (down 0.08 cent). Some contracts remained at the previous closing levels, with no trading activity recorded today.

Fibre2Fashion News Desk (KUL)