According to trade analysts, the US cotton July contract settled 58 points higher at 76.24 cents per pound (0.453 kg). The contract gained 161 points in the last two trading sessions. The December contract settled at 75.19 cents, up 66 points on Wednesday. It appreciated by 101 points in the last two days.
Yesterday, the dollar index gained from the lower levels and settled with positive momentum. A higher dollar made cotton purchases expensive for foreign buyers, which was a negative factor for ICE cotton.
On Thursday, the trading volume was slightly down, with just 38,587 contracts. A total of 46,815 contracts were cleared in the previous session. Open interest increased for the eighth consecutive day, up 1,797 contracts to 223,068 contracts. Yesterday, there was another surprising factor: certified stocks increased to 182,870 bales, up 13,135 bales, the largest daily increase in over a month after showing declining trends in the last 15 days.
USDA weekly net sales were 330,800 bales (Upland 326,200 and Pima 4,600 bales), with 9,500 bales in cancellations for the week. China remained the top US customer for the 2023-24 season with 4,771,900 bales committed and 3,975,900 bales shipped. Weekly shipments were 244,000 bales (Upland 238,800 and Pima 5,200 bales). Total commitments for the 2023-24 season were 12,110,300 bales, with 8,813,300 bales shipped.
On Friday, ICE cotton July 2024 traded 0.22 cents lower at 76.02 cents per pound. Meanwhile, cash cotton traded at 71.99 cents (up 0.83 cents), October (new crop) contract at 76.20 cents (up 0.93 cents), December 2024 contract at 74.96 cents (down 0.23 cents), March 2025 at 76.62 cents per pound (down 0.18 cents), and May 2025 at 78.12 cents (up 1.04 cents).
Fibre2Fashion News Desk (KUL)