Início Fashion ICE cotton edges up on short covering; traders remain cautious

ICE cotton edges up on short covering; traders remain cautious

ICE cotton saw a slight increase yesterday. The market exhibited a stable to upward tone after receiving support from stronger crude oil prices and short covering. Concerns regarding crop health also supported ICE cotton. However, traders remained cautious as they awaited more triggers to confirm momentum.

According to trade analysts, the ICE cotton December contract settled at 73.10 cents per pound (0.453 kg), up by 41 points yesterday. The March 2025 contract rose by 0.40 cents to reach 74.76 cents on Monday.

ICE cotton rose slightly yesterday, supported by stronger crude oil prices and short covering.
The December contract settled at 73.10 cents per pound, up 41 points.
Traders remain cautious, awaiting more market triggers.
USDA’s report showed a decline in the cotton crop’s condition, with 50 per cent rated good or excellent.
Trading volume was light.

The US dollar index initially eased down yesterday, supporting cotton futures. However, it later gained, making cotton less attractive for foreign buyers in the US. Rising crude oil prices supported cotton futures as they made alternative fibre polyester more expensive. Peak summer season consumption and OPEC+ production cuts had fuelled crude oil prices.

The trading volume was light at 27,909 contracts, compared to 40,676 contracts cleared on the previous Friday. Data from the US Commodity Futures Trading Commission (CFTC) showed that speculators reduced their net short positions in ICE cotton futures and options by 4,849 lots to 46,593 lots for the week ending June 25. ICE data revealed that as of June 28, the deliverable No. 2 cotton contract inventory stood at 59,035 bales, unchanged from the previous trading day.

The USDA’s weekly crop growth report, released after the market close, indicated that 50 per cent of US cotton was rated excellent or good for the week ending June 30, down from 56 per cent the previous week and 48 per cent in the same period last year. The report also showed that US cotton planting was at 97 per cent, compared to 94 per cent the previous week, 98 per cent during the same period last year, and the five-year average of 99 per cent. The major focus for the market will be on weather conditions in the upcoming week.

On Tuesday, ICE cotton for December 2024 traded 0.45 cents higher at 73.55 cents per pound. Cash cotton traded at 66.24 cents (up 0.26 cents), the July 2024 contract at 70.07 cents (up 0.26 cents), the October contract at 72.66 cents (up 0.42 cents), the March 2025 contract at 75.15 cents per pound (up 0.39 cents), and the May 2025 contract at 76.47 cents (up 0.38 cents). A few contracts remained at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)

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