ICE cotton prices rose for the second day yesterday, driven by increased exports of US cotton and technical support from oversold conditions. However, the gains were partially limited by a stronger US dollar, which made cotton more expensive for international buyers. US cotton prices reached a 13-month high due to macroeconomic factors.

Yesterday, the March 2025 ICE cotton contract closed at 70.43 cents per pound (0.453 kg), up 0.15 cents. During intraday trading, the contract peaked at 70.89 cents, its highest level since 14 November. This week, the March contract has gained 152 points so far, with other contracts rising by up to 73 points.

The US dollar index climbed to a 13-month high, buoyed by factors including labour market data. The stronger dollar curbed further cotton price gains, as it raised costs for overseas buyers.

Trading volume stood at 34,339 contracts, the lowest in five weeks, compared to 47,956 contracts in the previous session.

The USDA's weekly export sales report showed a net increase of 318,500 bales for the week ending November 14, the highest of the marketing year. This reflects a 108 per cent rise from the previous week and a 72 per cent increase compared to the four-week average. China was a significant buyer, purchasing 21,400 tons. Additionally, sales for the next marketing year rose by 16,000 bales.

Cotton remains near the oversold zone, attracting technical traders, while a 2 per cent increase in oil prices provided indirect support to commodity markets.

ICE cotton for March 2025 was traded at 70.10 cents per pound (down 0.33 cent). Cash cotton was traded at 66.43 cents (up 0.15 cent), the December 2024 contract at 69.19 cents per pound (up 0.73 cent), the May 2025 contract at 71.38 cents (down 0.27 cent), the July 2025 contract at 72.52 cents (down 0.28 cent), and the October 2025 contract at 71.54 cents (up 0.11 cent). A few contracts remained at the level of the last closing, with no trading noted today.

Fibre2Fashion News Desk (KUL)

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