During yesterday’s trading session, ICE cotton continued its downward trajectory, with multiple contracts hitting multi-month lows. Buyers remained cautious and largely inactive despite the US dollar’s decline. The value of natural fiber declined even more as a result of declining crude oil prices. ICE cotton has experienced a notable decrease of almost 18% in the last month.
Market data indicates that the ICE July contract finally settled at 81.33 cents per pound (0.453 kg), after plunging as low as 80.91 cents. The reduction in open interest persisted. The contract for December 2024 likewise fluctuated between 78.32 and 78.54 cents. But throughout today’s session, ICE cotton gained momentum in the majority of the contracts.
The US dollar index continued to decline, eventually falling below 106, according to market watchers. Cotton did not attract buyers despite the depreciation of the currency. Cotton became more affordable for overseas consumers due to a declining value of the US dollar. Crude oil fell more than 2% yesterday, which hurt cotton since polyester staple fiber, which is cotton’s main rival, is now less expensive due to low crude oil prices.
The US dollar index continued to decline, eventually falling below 106, according to market watchers. Cotton did not attract buyers despite the depreciation of the currency. Cotton became more affordable for overseas consumers due to a declining value of the US dollar. Crude oil fell more than 2% yesterday, which hurt cotton since polyester staple fiber, which is cotton’s main rival, is now less expensive due to low crude oil prices.
