According to trade analysts, the ICE cotton December contract settled at 72.76 cents per pound (0.453 kg), up by 99 points, as rolling over from July to December is happening rapidly before the first notice day.
The dollar index settled below the 105 level after discussions on an interest rate cut. Weakness in the dollar provided foreign buyers relief in US cotton purchasing. The rally in crude oil also supported the cotton value chain, as it made polyester more expensive for the textile industry.
Yesterday, the trading volume of ICE cotton was 49,112 contracts, slightly down due to a holiday in the market today. Additionally, 62,781 contracts of cotton were cleared. Total open interest began today at 216,807 contracts, down 1,271 contracts from yesterday. Certified stocks began today at 137,063 bales, down 920 bales.
Temperatures are rising again in a few pockets of Texas, areas which need rain for a good cotton crop in the US. If timely rains are not received in the region, it may result in weaker standing crops and potential abandonments.
There will be no trading in ICE cotton on Wednesday.
Fibre2Fashion News Desk (KUL)