According to trade analysts, US cotton July contract settled 244 points higher at 78.06 cents per pound (0.453 kg). December contract settled at 75.97 cents up 244 points in the last trading session of this week. But he still had lost 134 points during this week, which was fifth consecutive week with losses.
ICE cotton prices were up on Friday, spurred by a short-covering rally as a weaker US dollar made prices attractive after a long decline. The July contract closed up 244 points at 78.06 cents per pound. Despite the gain, it marked the fifth consecutive weekly loss. Concerns over Brazilian cotton quality and weather issues might shift buyers back to the US.
US job data and dollar index were lower, which fueled short covering. Dollar index settled below 105 which was good for economic conditions and cotton buyers. Crude oil was slightly down on Friday. But slight gains in late evening helped cotton to maintain momentum.
Yesterday trading volume was little improved which was recorded at 57,389 contracts, with 43,108 contracts cleared just the previous day. Certified stocks are now getting stagnant. Certified stocks started at 186,110 bales, just showing a decrease of 11 bales.
There were growing concerns regarding the quality of Brazilian cotton, and adverse weather in Brazil which potentially could prompt a shift in buying back to the US market.
At the end of Friday session, ICE cotton July 2024 was settled 2.44 cent higher at 78.06 cent per pound. While, Cash cotton was settled at 73.81 cent (up 2.44 cent), May 2024 77.36 cents (up 2.44 cent), October (new crop) contract 77.11 cents (up 2.08 cent), December 2024 contract 75.97 cents (up 1.79 cent) and March 2025 77.36 cents per pound (up 1.74 cent).
Fibre2Fashion News Desk (KUL)
