ICE cotton prices fall further amid weak sentiments, demand concerns

The downward trend in ICE cotton prices has not stopped even though export sales from the US are quite good. Yesterday, US cotton prices hit a new low, a trend that has been consistent over the past six sessions. Both the Chinese and Indian cotton markets are also under significant pressure. One analyst said that cotton futures prices could continue to decline. Concerns about the US cotton crop have eased, while a stronger dollar and concerns about demand following Israel's attack on Iran may also have contributed to weaker cotton demand.

According to market data, the July ICE cotton contract was steady at 80.61 cents per pound (0.453 kg) for a decline of 72 points. The December contract closed at 77.41 cents, down 113 points. Open interest decreased by 2,156 contracts, starting today at 201,421 contracts. Open interest has decreased for 11 consecutive sessions.

ICE cotton prices continue to fall despite strong US export sales, impacted by a strong dollar and concerns about global demand, especially after Israel's attack on Iran. The July cotton contract on ICE fell to 80.61 cents per pound with open interest falling over multiple sessions. Despite significant export commitments, market sentiment remains bearish.

Traders were interested in US export sales figures for the week ending April 11, which were quite good and encouraging. However, ICE cotton did not react positively to the trade data. Total US cotton export sales were 228,900 bales (upland: 226,200, pima: 2,700), with 6,000 bales cancelled. China was the largest net buyer with 92,600 bales. Total commitments for the 2023-2024 crop year reached 11,399,400 bales, with 7,855,100 bales shipped. Even so, the market continues to decline.

Certified ICE cotton stocks increased again, with today's starting inventory at 172,732 bales, resulting in 2,352 bales of new stock on the exchange. Certified inventories remain at their highest level since July 5, 2017 (293,761 bales).

Ravi Shankar Pandey, senior research associate at SMC Global Securities Ltd, told Fibre2Fashion“U.S. cotton may remain in bearish territory. Although concerns about the U.S. cotton crop have eased, a stronger dollar and demand concerns are weighing on market sentiment. Cotton contracts US July could find support at 78 cents per pound.” The US dollar index continues to rise, making cotton more expensive for foreign buyers.

In today's trading session, ICE cotton for July 2024 delivery traded 0.01 cent higher at 80.62 cents/pound. Cash cotton traded at 76.36 cents (-0.72 cents), May 2024 at 78.00 cents (-0.10 cents), October contract (new crop) at 78, 13 cents (-0.93 cents), December 2024 contract at 77.31 cents (-0.10 cents). ) and March 2025 at 79.94 cents per pound (0.00 cent).

Fiber2 Fashion News Desk (KUL)