ICE cotton contracts hit multi-month lows amid market turbulence
01 May 24 2 min read
Insights
- ICE cotton faced a significant drop on Tuesday due to multiple factors, including improved US weather, a stronger dollar, weaker crude oil prices, and inflation concerns.
- The July contract fell 309 points to 78.43 cents per pound, reaching a low of 78.03 cents.
- The December contract also declined, and cotton became less attractive for foreign buyers.
According to trade analysts, the US cotton July contract dropped 309 points to 78.43 cents per pound (0.453 kg). The contract touched a new low of 78.03 cents during the previous session. The December contract settled at 76.83 cents per pound with a loss of 142 points on Tuesday. It lost 716 points in April 2024.
The dollar index crossed 106 levels and settled above this, making cotton expensive and unattractive for foreign buyers. Meanwhile, crude oil settled lower after a calm in the Middle East, which hurt cotton sentiments. The Federal Open Market Committee’s decision on interest rates are . Analysts are not expecting any interest rate cut due to inflation concerns.
ICE cotton noticed gains in trading volume after previous declines. A total of 59,615 contracts were traded on Tuesday. Certified cotton stocks began to decline, starting today at 182,659 bales, with a net reduction for the first time since March.
- US’ scrutiny of Chinese imports & tariffs threaten inflation battle
- 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
- MCCI urges Dhaka to take steps to stabilise forex reserves, inflation
- North Indian cotton yarn’s demand rises; prices further up in Ludhiana
Currently, US cotton belts are experiencing favourable weather, which is supportive of a big crop ahead. This was also another reason for the major tsunami in the market. During March 2024, ICE May lost 8.19 cents, and ICE July lost 5.80 cents. The ICE cotton July contract lost 13.54 cents in April 2024.
In Wednesday's session, the ICE cotton July 2024 was traded 0.39 cent lower at 78.04 cents per pound. Meanwhile, cash cotton was traded at 74.18 cents (down 3.09 cents), May 2024 at 78.04 cents (down 2.10 cents), the October (new crop) contract at 77.26 cents (down 1.79 cents), the December 2024 contract at 76.60 cents (down 0.23 cent), and March 2025 at 78.28 cents per pound (down 0.21 cent).
Fibre2Fashion News Desk (KUL)
Popular News
|
EU Council adopts ecodesign; bans destruction of unsold textile |
|
US retailer Ross Stores posts net earnings of $488 mn in Q1 |
|
Italy’s consumer confidence index up from 95.2 to 96.4 in May: Istat |
|
Surat’s rapier weavers to cut production by 80% to tackle weak demand |
|
Demand rises in south India’s cotton yarn market, prices up in Mumbai |
|
Global recovery may have propelled India’s FY24 GDP growth to 8%: SBI |