According to trade analysts, the US cotton July contract settled 300 points higher at 79.38 cents per pound (0.453 kg). The contract has noted significant gains due to crop concerns. The December contract settled at 77.28 cents, up 200 points on Wednesday.
Yesterday, the dollar index further gained and settled at 104.8. A stronger US dollar made cotton purchases expensive for foreign buyers. Crude oil lowered by 1 per cent. However, US cotton ignored the unfavourable external movement.
Trading activities increased slightly yesterday. The volume was substantial at 45,792 contracts, which is higher compared to the past few sessions. Certified stocks started the day at 191,566 bales on the ICE exchange, increasing by 913 new certs. There were very limited selling activities on board yesterday. Some sellers booked their positions, leading to this rally.
The recent weather report indicated heavy rains in the south and southeast of the Delta over the past week, significantly improving moisture levels in cotton-growing areas. Rainfall is expected to improve in the Coastal Bend area this week, which may cause some damage to cotton. The market is worried about continued wet weather conditions and their impact on crop planting.
On Thursday, ICE cotton July 2024 was traded 0.31 cent lower at 79.07 cents per pound. The contract had seen a significant rise in the last session. Cash cotton was traded at 75.13 cents (up 3.00 cents), the October (new crop) contract at 78.35 cents (up 0.07 cents), the December 2024 contract at 77.03 cents (down 0.25 cents), March 2025 at 78.72 cents per pound (down 0.11 cents), and May 2025 at 79.98 cents (down 0.11 cents).
Fibre2Fashion News Desk (KUL)