Yesterday, the ICE cotton December contract settled at 69.34 cents per pound (0.453 kg), down 1.01 cents. This ended a five-day gaining streak during which it had gained 330 points. Despite this, global crude oil prices increased by over one per cent due to expectations of a US interest rate cut, marking a decline over the last four consecutive trading sessions. The rise in crude oil prices made the polyester value chain more expensive, which helped limit losses in cotton futures.
Certified cotton stocks remained unchanged at 12,767 bales, with the first notice day for December futures set for 22 November.
The weather in West Texas remains concerning. The drought area has expanded to cover 30 per cent of the cotton belt, a significant increase compared to last week. The condition in the Delta region is favourable, providing some support to the market.
Traders are focusing on weather conditions and demand at lower prices. A Federal Reserve rate cut may boost the economic outlook in the coming days.
Currently, ICE cotton for December 2024 is trading at 69.42 cents per pound, up 0.08 cents. Cash cotton is trading at 65.09 cents (down 0.12 cents), the October contract at 69.59 cents (down 0.12 cents), the March 2025 contract at 70.05 cents per pound (up 0.09 cents), the May 2025 contract at 72.12 cents (up 0.07 cents), and the July 2025 contract at 72.76 cents (up 0.10 cents). A few contracts remained at the same level as the last closing, with no trading noted today.
ALCHEMPro News Desk (KUL)
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