According to trade analysts, the US cotton July contract remained range-bound and settled at 7 points up at 81.08 cents per pound (0.453 kg). Meanwhile, the December contract settled at 77.64 cents per pound with a loss of 5 points on Thursday. Cotton prices were attractive for buyers after a steep fall, but external factors were not supportive. All contracts of ICE cotton traded with slight gains on Friday.
ICE cotton prices stabilised amid an improvement in US cotton exports and a weaker US dollar, providing some market support.
However, confidence was tempered by falling crude oil prices, weak US GDP data, and prospect of delayed Federal Reserve rate cuts.
The ICE cotton July contract ended slightly higher, while the December contract recorded a slight loss.
The US dollar index was down, settling at 105.5 levels. A weaker dollar makes US cotton cheaper for foreign buyers. Trading volume remained steady yesterday; the final volume was 28,224 contracts, which was the second-lowest daily volume in 2024. Over the last two sessions, trading volume has been flat or, one might say, lacked momentum.
The USDA’s Weekly Export Report showed good figures, with net sales reaching 261,500 bales for the week ending April 18. China continues to lead as the top buyer for the 2023-24 season crop, albeit with slightly weaker weekly shipments of 271,800 bales. ICE cotton certified stocks began today at 178,147 bales. Higher stocks put more pressure on cotton prices.
In Friday’s session, ICE cotton for July 2024 traded 0.04 cent higher at 81.12 cents per pound. Meanwhile, cash cotton traded at 76.83 cents (up 0.07 cent), May 2024 at 79.58 cents (up 0.07 cent), the October (new crop) contract at 78.56 cents (up 0.09 cent), the December 2024 contract at 77.85 cents (up 0.21 cent), and the March 2025 contract at 79.42 cents per pound (up 0.11 cent).
Fibre2Fashion News Desk (KUL)
