ICE cotton experienced another sell-off, leading to a decline in prices on Thursday. Despite favourable factors such as robust US cotton export sales and a weakened dollar index, these did not uplift market sentiment. The reasons behind the downtrend in ICE cotton prices remain unclear. Currently, traders are eagerly anticipating the release of today's WASDE report.

According to trade analysts, the US cotton July contract settled 146 points lower at 78.46 cents per pound (0.453 kg). The December contract settled at 76.46 cents, down 124 points on Thursday. ICE cotton continued to see losses on Friday.

The USDA announced cotton export sales on Thursday, which was positive, but the market ignored it and witnessed a declining trend. Yesterday, the dollar index was weak. A lower dollar index made cotton purchases cheaper for foreign buyers but also failed to support cotton prices. Stronger crude oil was also unable to push cotton prices.

The trading volume was slightly down. The final volume stood at 47,386 contracts, while 60,467 contracts were cleared on the previous day. Certified stocks started the day at 167,979 bales, witnessing a decrease of 791 bales in decerts. Despite this decline, there are still over 37,000 bales of possible decerts remaining.

Today, the USDA monthly supply-demand report will be released, which may have long-term potential impacts on the cotton markets. It will offer insights into the first country details of the 2024-25 season and the final US Production Report.

On Friday, ICE cotton July 2024 was traded 0.49 cent lower at 78.11 cents per pound. Meanwhile, cash cotton was traded at 74.35 cents (down 1.46 cents), the October (new crop) contract at 77.75 cents (down 1.19 cents), the December 2024 contract at 75.70 cents (down 0.76 cent), March 2025 at 77.25 cents per pound (down 0.76 cent), and May 2025 at 78.47 cents (down 0.73 cent).

Fibre2Fashion News Desk (KUL)

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