However, a weaker dollar index and stronger crude oil prices mitigated the decline in cotton prices. The trading volume for ICE cotton increased to 56,511 lots, surpassing the active trade lots of 52,694 from the previous trading session.
ICE Cotton May 2024 contract saw a decline, settling at 88.77 cents per pound after breaking below the 89 cents mark.
The drop in cotton prices is attributed to factors such as increased inventory, weak demand, favourable weather conditions and higher US cotton prices.
A weaker dollar index and stronger crude oil prices provided some support.
Currently, traders are anticipating the next export sales report. Last week, sluggish export demand negatively impacted market sentiments. The USDA’s upcoming weekly export sales report, scheduled for release next Friday, is anticipated to remain weak. Furthermore, the International Cotton Advisory Committee (ICAC) recently projected an increase in production for the 2024-25 season, which is another bearish factor for the global cotton market.
For the ICE Cotton July 2024 contract, the price weakened to 90 cents, reflecting a decline of 0.20 per cent. The December 2024 contract also experienced a downturn, falling 0.03 per cent to 84.07 cents. The ICE cotton prices for March 2025 were noted at 85.02 cents (0.03 per cent decrease), July 2025 at 85.49 cents (0.03 per cent decrease), and December 2025 at 78.80 cents (0.03 per cent increase).
Fibre2Fashion News Desk (KUL)
