According to trade analysts, the US cotton July contract settled 44 points higher at 77.50 cents per pound (0.453 kg). The December contract settled at 75.75 cents, up 44 points on Tuesday.
Yesterday, the dollar index was stronger, which encouraged the selling of cotton. It settled at 105.3, making cotton expensive for foreign buyers. However, crude oil also recovered from the lower range, which supported cotton prices.
The trading volume was slightly up at 36,721 contracts on Tuesday, with 33,124 contracts cleared the previous day, indicating ongoing market activity. Open interest has increased in four trading sessions out of the last five, indicating potential new speculative shorts and trade longs entering the market. The total open interest stood at 210,242 contracts, up 2,066 contracts from the previous day. Yesterday, certified stocks began the day at 184,790 bales, down 1,320 bales, with no bales awaiting review.
Market participants are looking forward to the US cotton export sales report on Thursday and the USDA WASDE report due on Friday, particularly for its inclusion of the first country details for the 2024-25 season. The report will also include the final 2023-24 US Crop Production Report.
On Wednesday, ICE cotton July 2024 was traded 0.24 cent higher at 77.74 cents per pound. Cash cotton was traded at 73.25 cents (up 0.44 cent), May 2024 at 77.00 cents (up 0.44 cent), the October (new crop) contract at 76.65 cents (up 0.49 cent), the December 2024 contract at 76.00 cents (up 0.25 cent), and March 2025 at 77.50 cents per pound (up 0.24 cent).
Fibre2Fashion News Desk (KUL)