According to trade analysts, the US cotton July contract settled 32 points higher at 77.63 cents per pound (0.453 kg). The December contract settled at 75.63 cents, up 52 points on Monday.
The dollar index settled at 105.1, making cotton purchases attractive for foreign buyers. If the dollar index remains weak, cotton prices may see an upward trend. Stronger crude oil prices also supported cotton prices.
The total volume of ICE cotton in the market was 33,235 contracts on Monday, with 32,543 contracts cleared on Friday. Most traders are waiting for stability and consolidation before taking positions. Certified stocks started at 166,311 bales, with a decrease of 176 bales in decerts. Certified stocks remain mostly stable with very slow movements, as only 1,756 bales are possible decerts from May deliveries, despite higher earlier estimates.
After market hours, the USDA US Crop Progress Report was published, indicating that 33 per cent of the crop has been planted, surpassing the 5-year average of 31 per cent. Ten states boast a higher average than this, while four states lag behind. The primary focus is now on current demand at lower prices. Brazil's cotton markets are struggling due to weather disruptions and logistical issues. Any shift of buyers towards US cotton will support the market.
On Monday, ICE cotton July 2024 was traded 0.09 cents lower at 77.54 cents per pound, while cash cotton was traded at 73.38 cents (up 0.32 cents). The October (new crop) contract was 77.06 cents (up 0.32 cents), the December 2024 contract was 75.56 cents (down 0.07 cents), the March 2025 contract was 77.08 cents per pound (down 0.04 cents), and the May 2025 contract was 78.29 cents (up 0.04 cents).
Fibre2Fashion News Desk (KUL)