According to trade analysts, the US cotton July contract settled 78 points higher at 75.41 cents per pound (0.453 kg). The December contract settled at 74.29 cents, up 15 points on Wednesday.
Yesterday, US inflation data showed stability, brightening the chance of a rate cut in the coming days. The dollar index also eased 0.6 per cent, making cotton buying cheaper for foreign buyers. Crude oil also improved after touching a two-month low as the market weighed bullish US economic and crude oil inventory data.
Trading volume was relatively low in yesterday’s session, with just 27,000 lots traded. Overall, traders showed hesitation in making new positions. Certified stocks in the ICE cotton exchange rose again yesterday to 169,735, which is up by 4,470 bales. Traders are waiting for the US export sales report, which is due this evening.
On Thursday, ICE cotton July 2024 was traded 0.73 cents higher at 76.14 cents per pound. Meanwhile, cash cotton was traded at 71.16 cents (up 0.78 cents), the October (new crop) contract at 75.27 cents (down 0.31 cents), the December 2024 contract at 74.81 cents (up 0.52 cents), the March 2025 contract at 76.39 cents per pound (up 0.54 cents), and the May 2025 contract at 77.61 cents (up 0.53 cents).
Fibre2Fashion News Desk (KUL)