According to trade analysts, the US cotton July contract settled 33 points higher at 73.48 cents per pound (0.453 kg). The December contract settled at 73.51 cents, up 16 points on Tuesday. ICE cotton was trying to stabilise after heavy losses in the last couple of trading sessions.
The dollar index remained flat yesterday. However, it was still high enough to push buyers away. If the dollar index eases, it may support the cotton market with attractive lower prices.
Currently, US cotton markets are enjoying good trading volume. Yesterday, the trading volume was 64,425 contracts, compared to 72,670 contracts cleared earlier. Certified stocks in ICE indicate that the deliverable No. 2 cotton futures contract inventory has risen to 126,714 bales as of June 3, 2024.
Currently, weather and crop conditions are great in the US, which are indicative of a higher crop size. Generally, speculators are betting on these factors and slow demand.
Traders are now waiting for US cotton export sales data, which is due tomorrow, to take new positions. Currently, Brazilian and Australian cotton is making a significant dent in US cotton markets.
On Wednesday, ICE cotton July 2024 traded 1.11 cents higher at 74.59 cents per pound. Cash cotton traded at 69.73 cents (up 0.33 cents), the October (new crop) contract at 74.92 cents (up 0.59 cents), the December 2024 contract at 74.57 cents (up 1.06 cents), the March 2025 contract at 76.27 cents per pound (up 1.06 cents), and the May 2025 contract at 77.68 cents (up 0.92 cents).
ALCHEMPro News Desk (KUL)
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