Yesterday, the ICE cotton March 2025 contract settled at 66.03 cents per pound (0.453 kg), down by 0.01 cents. However, the May contract gained 2 points, closing at 67.22 cents. Other contracts saw gains ranging from 3 to 17 points.
The US dollar index continued to inch up, making cotton purchases more expensive for overseas buyers. A stronger dollar capped gains in cotton futures.
The daily trading volume stood at 71,866 contracts, with 78,956 contracts cleared the previous day. Deliverable No. 2 cotton futures inventory remained unchanged at 218 bales as of February 5.
The USDA Weekly Export Report showed a strong performance, with weekly shipments reaching the highest level of the season. Net sales for the week ending January 30 were 210,100 bales, including 204,200 upland bales and 5,900 Pima bales. Net sales were lower than the previous week and the average of the past four weeks.
Analysts noted that stronger shipments were more crucial for market sentiment than increased sales, as they reflect realised demand rather than just commitments.
Chicago Board of Trade (CBOT) soybean, corn, and wheat futures also saw gains, driven by relief over US tariffs not escalating trade conflicts and concerns about South American crop conditions.
Market watchers are focusing on upcoming demand trends, particularly from China and Turkiye. Currency fluctuations may affect the competitiveness of cotton trade.
Currently, ICE cotton for March 2025 is trading at 66.42 cents per pound (up 0.39 cent), cash cotton at 63.53 cents (down 0.01 cent), the May 2024 contract at 67.57 cents per pound (up 0.35 cent), the July 2025 contract at 68.70 cents (up 0.33 cent), the October 2025 contract at 69.01 cents (up 0.08 cent), and the December 2025 contract at 69.18 cents (up 0.29 cents). A few contracts remained at the level of the last closing, with no trading noted today.
ALCHEMPro News Desk (KUL)
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