ICE cotton prices plunge to new lows amid market gloom

05 Apr '24

2 min read

Pic: Adobe Stock

Insights

ICE cotton prices hit new lows amid a bleak market, with cash settlement dropping to 83.64 cents per pound.
Sluggish demand and rising stocks at ICE are dampening sentiments, despite a weaker dollar offering some support.
With the market's eyes on upcoming export sales reports and ICAC projecting higher production for 2024-25, the outlook remains cautious.

ICE cotton has further declined due to a gloomy market outlook. ICE cotton (cash) settled at 83.64 cents per pound, showing a decrease of 1.84 cents. The new cotton for October 2024 also fell by 1.47 cents to 84.28 cents per pound. Slow demand and increased stocks at ICE have dampened market sentiments. However, a weaker dollar index has somewhat limited the fall in ICE cotton prices.

Market researchers have noted that ICE cotton has reached new monthly lows. The slow demand and a price inversion between higher old crop prices and lower new crop prices are exerting pressure on the market.

According to ICE data, certified cotton stocks have risen to 92,654 bales from 67,576 bales on April 1. An increase in stock that can be delivered will enhance market availability. The May 2024 contract slightly recovered (0.05 cent) to 87.19 cents after a steep fall in the previous session. The ICE cotton price for the July 2024 contract also saw an improvement of 0.16 cent to 88.73 cents after a decline in the previous session. The October 2024 (new crop) contract dropped by 1.47 cents to 84.28 cents per pound. The December 2024 contract also experienced negative sentiments, decreasing by 0.19 cent to 83.33 cents. The March 2025 contract was noted at 84.39 cents, with a gain of 0.12 cent. The market is now awaiting the next export sales report.

Last week, weak export demand negatively impacted market sentiments. The USDA's new weekly export sales report, expected next Friday, is anticipated to remain weak. Additionally, the International Cotton Advisory Committee (ICAC) has projected higher production for the upcoming 2024-25 season, which is another negative factor for the global cotton market.

Fibre2Fashion News Desk (KUL)

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