The ICE cotton July contract settled 70 points lower at 81.72 cents per pound of 0.453 kg. The December contract also fell by 41 points to 78.08 cents per pound. ICE cotton had experienced a steep decline of up to 2 per cent last night. However, supportive external factors limited the fall in today’s session.
The dollar index declined yesterday after a drop in the flash US PMI from 52.1 to 50.9 in March 2024. It was just above the threshold indicating economic expansion. A weaker dollar made cotton cheaper for foreign buyers. Yesterday, crude oil was also slightly up, which helped the cotton market to remain rangebound.
Trading volume for ICE cotton slowed down. Yesterday's volume was at 38,862 contracts. The average volume for 2024 is 56,851 contracts, which is historically high. Open interest saw a third day of increases, up 758 contracts yesterday to start at 204,512 contracts. Certified stocks in the ICE cotton exchange began today at 176,785 bales, up 175 bales in new certifications. There were 6,087 bales awaiting review.
During today’s session, ICE cotton July 2024 traded 0.42 cent lower at 81.30 cents per pound. Cash cotton was traded at 77.47 cents (down 0.70 cent), May 2024 at 80.22 cents (up 0.18 cent), the October (new crop) contract at 79.04 cents (down 0.18 cent), the December 2024 contract at 77.70 cents (down 0.38 cent), and the March 2025 contract at 79.44 cents per pound (down 0.32 cent).
ALCHEMPro News Desk (KUL)
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