Yesterday, the ICE cotton December contract settled at 67.88 cents per pound (0.453 kg), down 1.56 cents. The contract traded between 67.80 and 69.57 cents yesterday, touching its lowest level since August 19. It lost 3 per cent over the week, marking the second consecutive weekly decline.

Crude oil dipped more than 2 per cent on Friday following weaker-than-expected US employment data, which outweighed the positive impact of a supply delay from OPEC+ producers.

The trading volume on Friday was 37,979 contracts, with 26,113 contracts cleared the previous day. Open interest increased by 552 contracts, bringing the total to 229,809 contracts.

Data released by the US Commodity Futures Trading Commission (CFTC) on Friday showed that speculators increased their net short positions in ICE cotton futures and options by 740 contracts during the week ending September 3. This brought the total net short positions held by speculators to 56,371 contracts.

The US Department of Agriculture (USDA) released an export sales report on Friday, showing an increase of 207,500 bales in US upland cotton export sales for the current market year during the week ending August 29.

Traders noted that overall market sentiment remains negative, with signs of a weakening US economy adding to the pressure. Speculators continued to maintain a bearish outlook as they anticipated the upcoming harvest.

Traders are now awaiting the USDA WASDE report, due on September 12, for insights into the global demand and supply scenario.

ICE cotton for December 2024 settled at 67.88 cents per pound, down 1.56 cents. Cash cotton settled at 62.62 cents (down 2.37 cents), the October contract at 67.12 cents (down 2.37 cents), the March 2025 contract at 69.69 cents per pound (down 1.56 cents), the May 2025 contract at 71.02 cents (down 1.49 cents), and the July 2025 contract at 71.87 cents (down 1.29 cents).

Fibre2Fashion News Desk (KUL)