ICE cotton slightly up; sentiments weak amid strong dollar, weak oil

21 May '24

2 min read

ICE cotton slightly up; sentiments weak amid strong dollar, weak oil

Pic: Adobe Stock

Insights

ICE cotton saw slight gains on Monday with the July contract settling at 76.03 cents per pound, up 14 points.
Trading activity was subdued, with Monday's volume being the fourth lowest of 2024.
The market remains range-bound, with no significant triggers to drive prices.
Factors like stronger dollar and weaker crude oil prices applied downward pressure.

ICE cotton settled with mild gains on Monday. The market opened this week on a positive note. But there was no trigger for prices to move forward as there was no fundamental change. The market was nervous after ease in crude oil. Traders were watching latest round of geopolitical development. USDA released cotton sowing report after closing of the market.

According to trade analysts, US cotton July contract settled 14 points higher at 76.03 cents per pound (0.453 kg). December contract settled at 75.01 cents, up 4 points on Monday. The market noted minor gains in cotton futures. The prices remained range bound and there was pressure at higher levels.

Yesterday, dollar index was slightly up, settled at 104.3. It was negative factor suppressing export demand of US cotton. Weaker crude oil also put pressure on ICE cotton.

Cotton trading activities were slow in last few sessions. On Monday, the volume was 25,555 contracts, marking the fourth lowest volume day in 2024, indicating reduced market activity. Open Interest remains stable at 224,052 contracts, indicating the total number of outstanding contracts. Certified Stocks were again rising, and yesterday 192,348 bales were reported in ICE Cotton exchange, reflecting the total certified inventory, with 3,568 bales newly added.

Now major focus is on demand at lower levels, weather conditions in the coming days and sowing progress around the world.

On Monday, ICE cotton July 2024 was traded 0.22 cent lower at 75.81 cent per pound. While, Cash cotton was traded at 71.99 cent (up 0.14 cent), October (new crop) contract 75.96 cents (up 0.14 cent), December 2024 contract 74.97 cents (down 0.04 cent), March 2025 76.55 cents per pound (down 0.08 cent) and May 2025 77.90 cents (up 0.01 cent).

Fibre2Fashion News Desk (KUL)

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