ICE cotton climbs amid strong market fundamentals, slow acreage in US
09 May 24 2 min read
Insights
- ICE cotton prices increased on Wednesday, driven by solid buying influenced by robust market fundamentals and a recovery in crude oil prices.
- Additional support came from the slow progress in US cotton sowing and supply disruptions from Brazil.
- Market watchers are now focused on today's US cotton export report and the forthcoming WASDE report.
According to trade analysts, the US cotton July contract settled 256 points higher at 80.06 cents per pound (0.453 kg). The December contract settled at 77.70 cents, up 195 points on Wednesday. However, ICE cotton was traded with losses on Thursday.
Yesterday, the dollar index was steady and settled with mild gains. Although cotton received some demand due to nearly yearly low prices. Crude oil prices showed significant recovery yesterday, rising about 2 per cent, which supported the cotton rally.
The US cotton market has indicated that the prices are getting bottomed out. During the last four sessions, the most active contracts have closed higher in three sessions.
- ICE cotton continues decline, reversing earlier gains
- South Indian cotton yarn market steady despite weak sentiments
- ICE cotton witnesses heavy losses due to better weather, huge sell-off
- North Indian cotton yarn’s demand rises; prices further up in Ludhiana
- ICE cotton dips due to profit booking & other negative factors
- ICE cotton prices surge amid crop concerns & weaker US dollar
The market noted a higher volume of trade on Wednesday. The trading activity surged with a volume of 60,467 contracts, making it the most active session in the last 14 sessions. Certified stocks commenced at 168,770 bales yesterday, witnessing a reduction of 16,020 bales.
Today, US cotton sales data will be released, which will provide insights about current demand. The WASDE report will also be announced this week, which will have larger implications on world cotton markets.
On Thursday, ICE cotton July 2024 was traded 1.21 cents lower at 78.85 cents per pound. Meanwhile, cash cotton was traded at 75.81 cents (up 2.56 cents), the October (new crop) contract at 79.00 cents (up 0.06 cent), the December 2024 contract at 76.48 cents (down 1.22 cents), March 2025 at 78.11 cents per pound (down 1.08 cents), and May 2025 at 79.24 cents (down 1.03 cents).
Fibre2Fashion News Desk (KUL)
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