In the US session, the ICE cotton cash price dropped by 0.61 cent to 82.54 cents. The July 2024 contract saw gains of 0.36 cent, reaching 88.20 cents, while the October 2024 (new crop) contract decreased by 0.80 cent to 82.69 cents per pound. The December 2024 contract increased by 0.47 cent to 81.83 cents, and March 2025 also saw an uptick of 0.29 cent to 82.72 cents per pound. Most contracts traded lower in the day trading session.

According to a market analyst, ICE cotton recorded a high volume with nearly 75,000 lots traded, but open interest declined. The dollar index was slightly up, exerting pressure on the cotton market, although the gains were minimal. Crude oil prices continued to fall, nearing $85 per barrel, which also posed a negative factor for cotton futures.

There is a probability of local rainfall in the western cotton region, and the moisture levels are generally sufficient in the US. In Texas, the main cotton-producing area, there have been strong winds in many places recently. The rainfall is generally limited in the area, so the moisture has not improved significantly. The current weather conditions are crucial for the next cotton crop in the US.

According to ICE data, certificated stocks saw another increase as of April 8, with deliverable cotton contracts rising from 112,054 bales to 125,722 bales. The major focus now is on the next WASDE report and US export sales due this Thursday for more indications about demand and the scenario.

Fibre2Fashion News Desk (KUL)