Recent demand from China prompted ICE cotton to move up.
May futures settled at 95.28 US cent per pound with a gain of 104 points. It had lost 684 points in the last four sessions. After the recovery of 104 points, net loss reduced to 580 points. July future was traded 92 points higher to settle down at 93.99 US cent per pound. December futures of new cotton increased 18 points to settle at 83.30 US cent per pound.
According to market analysts, money flow was the key driver for Wednesday’s rally. Demand and supply dynamics were seen sideway. Open interest were 3,120 contracts higher to reach 271,301 contracts.
The market will have to see USDA’s US weekly export report on March 7 for week ended February 29. USDA world supply-demand report will be released on March 8. These reports will provide a direction to the cotton market.
ALCHEMPro News Desk (KUL)
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