ICE cotton May 2024 contract dips below 89 cents amid market pressures

04 Apr '24

2 min read

Pic: Adobe Stock

The ICE Cotton May 2024 contract breached the lower level of 89 cents to reach 88.77 cents per pound, marking a decline of 0.23 cent. Market experts attribute this to a combination of higher inventory, weak demand, favourable weather conditions for the upcoming crop, and the higher prices of US cotton, all of which dampened market sentiments for ICE cotton.

However, a weaker dollar index and stronger crude oil prices mitigated the decline in cotton prices. The trading volume for ICE cotton increased to 56,511 lots, surpassing the active trade lots of 52,694 from the previous trading session.

Currently, traders are anticipating the next export sales report. Last week, sluggish export demand negatively impacted market sentiments. The USDA's upcoming weekly export sales report, scheduled for release next Friday, is anticipated to remain weak. Furthermore, the International Cotton Advisory Committee (ICAC) recently projected an increase in production for the 2024-25 season, which is another bearish factor for the global cotton market.

For the ICE Cotton July 2024 contract, the price weakened to 90 cents, reflecting a decline of 0.20 cent. The December 2024 contract also experienced a downturn, falling 0.03 cent to 84.07 cents. The ICE cotton prices for March 2025 were noted at 85.02 cents (0.03 cent decrease), July 2025 at 85.49 cents (0.03 cent decrease), and December 2025 at 78.80 cents (0.03 cent increase).

Fibre2Fashion News Desk (KUL)

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