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According to trade analysts, US cotton July contract settled 100 points higher at 75.44 cents per pound (0.453 kg). It was the third consecutive trading session when the contract witnessed upward trend. December contract settled up 9 cents at 73.60 cents on Wednesday.
Dollar index was down yesterday which supported cotton prices. Dollar index eased as central banks have started reducing interest rates. The European Central Bank has reduced rate by 0.25 per cent to 3.75 per cent. The US Federal Reserve may also take a similar decision. Crude oil was above more than two per cent which made cotton purchase more attractive.
Yesterday major trading was seen in July month, as it was the last session of options expiry. The final trading volume was 53,605 contracts. Cleared contracts for the previous day were 45,272. Certified Stocks yesterday began at 129,146 bales, slightly increased by 1,156 bales in new certifications. Around 3,531 bales were awaiting review.
For the week ending May 30, 2024, net Upland sales for the 2023-24 season totalled 138,700 RB (running bales), marking a decrease of 38 per cent from the previous week and 34 per cent from the prior 4-week average. There was no overall change in fundamentals. No major triggers were available, as the market now focused on WASDE report due next week.
On Friday, ICE cotton July 2024 was traded 0.06 cent lower at 75.38 cent per pound. Cash cotton was traded at 71.69 cent (up 1.00 cent), October (new crop) contract 75.57 cents (up 0.47 cent), December 2024 contract 73.63 cents (up 0.03 cent), March 2025 75.43 cents per pound (up 0.01 cent) and May 2025 77.41 cents (up 0.42 cent).
Fibre2Fashion News Desk (KUL)