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According to market data, the ICE cotton July contract settled at 80.61 cents per pound (0.453 kg) with a loss of 72 points. The December contract settled at 77.41 cents, down 113 points. Open interest decreased by 2,156 contracts, starting today at 201,421 contracts. Open interest has fallen for 11 consecutive sessions.
Traders were keen on the US export sales figures for the week ending 11 April, which were quite good and encouraging. However, ICE cotton failed to respond positively to the trade data. US cotton's total export sales were 228,900 bales (upland: 226,200, pima: 2,700), with 6,000 bales in cancellations. China was the largest net buyer with 92,600 bales. Total commitments for the 2023-2024 season reached 11,399,400 bales, with 7,855,100 bales shipped. Despite this, the market continued to fall.
Certified stocks of ICE cotton increased again, with stocks beginning today at 172,732 bales, the result of 2,352 bales in new exchange stocks. Certified stocks remained at their highest level since 5 July 2017 (293,761 bales).
Ravi Shankar Pandey, senior associate-research at SMC Global Securities Ltd, told Fibre2Fashion, "US cotton may stay in the bearish zone. Although US cotton crop concerns have eased, a stronger dollar and demand concerns are affecting market sentiments. The US cotton July contract may find support at 78 cents per pound." The US dollar index gained further, making cotton more expensive for foreign buyers.
During today's session, ICE cotton for July 2024 traded 0.01 cent higher at 80.62 cents per pound. Cash cotton traded at 76.36 cents (-0.72 cent), May 2024 at 78.00 cents (-0.10 cent), the October (new crop) contract at 78.13 cents (-0.93 cent), the December 2024 contract at 77.31 cents (-0.10 cent), and March 2025 at 79.94 cents per pound (0.00 cent).
Fibre2Fashion News Desk (KUL)