For the second straight trading day on Thursday, ICE cotton saw gains. Due to inadequate coverage, weather-related worries in the US and Brazil, and an average export sales report, the July contract saw a 3% increase. However, outside variables continued to be detrimental to the cotton market.
The US cotton July contract finished 234 points higher at 81.72 cents a pound (0.453 kg), according to trade analysts. A number of variables contributed to the contract hitting its one-month high, which was 82.60 cents, the most since April 23. On Thursday, the December contract gained 134 points, settling at 78.63 cents.
The dollar index closed above 105 yesterday, up. Foreign customers are finding cotton purchases more expensive due to the strengthening US currency. Due to weak demand and unfavorable data, crude oil was lower, which also contributed to the drop in cotton prices. Trading activity showed a notable improvement yesterday. At 72,576 contracts, the volume was recorded as the highest for the current month. Traders covering their short positions drove this rise, which increased the gains even further. According to ICE, certified stock decreased marginally from 191,566 bales to 191,522 bales.
US cotton export sales for the current market year have increased by a net of 203,000 bales, according to the USDA’s weekly export sales report. 204,100 bales were exported, with China being the main destination.
The recent reports of China’s and Brazil’s output declines also added to the price increase. Brazil’s flooding has sparked worries about when to plant crops. The US’s very wet weather is also advantageous for the cotton market. Currently, global weather patterns and speculative actions are the main concerns for cotton dealers.
ICE cotton July 2024 was trading at 81.40 cents per pound on Friday, down 0.32 cents. In the most recent session, the contract kept rising. Cash cotton was traded for 2.84 cents more in October than in October last year; the October contract for new crop cotton was up 1.34 cents; the December 2024 contract was down 0.33 cents; the March 2025 contract was down 0.30 cents; and the May 2025 contract was down 0.33 cents.
