ICE cotton market is under pressure due to lack of confidence. Despite better export sales and shipments of US cotton, market sentiments remain poor. Analysts believe the market is driven by technical factors with no fundamental support. ICE contracts have dropped to two-year lows. Traders are hopeful for a rebound in cotton buying at lower prices and improved weather conditions for the global cotton crop. US cotton July contract closed at the lowest since July, settling at 71.35 cents per pound, while December contract settled slightly higher at 71.79 cents.
The dollar index rose above 105 levels, making US cotton more expensive for buyers. Crude oil prices were slightly lower, adding pressure on cotton prices. Trading volume reached 53,297 contracts, with 61,038 cleared the previous day. The USDA Weekly Export Report showed net sales of 360,800 bales (Upland 357,100/Pima 3,700) for the week ending 6 June, including 6,700 bales in cancellations. China remained the top US customer for the 2023-24 season.
On Friday, ICE cotton prices saw slight increases with July 2024 trading at 71.50 cents per pound. Cash cotton prices dropped to 67.60 cents, while October and December 2024 contracts rose to 73.31 cents and 72.14 cents respectively. March and May 2025 contracts also saw increases in trading. Overall, there was active trading in the market.
