ICE cotton prices saw a recovery after a period of decline, driven by technical short covering, a weakened dollar index, and rising crude oil prices. Potential weather concerns in Texas also contributed to the rebound. The ICE cotton December contract settled at 72.76 cents per pound, up by 99 points, as traders quickly rolled over from July to December contracts. This recovery followed several days of falling prices.
The dollar index dropped below 105 after talks of a rate cut, benefiting foreign cotton buyers. The rise in crude oil prices also boosted the cotton industry by driving up polyester costs for textile manufacturers.
Yesterday, ICE cotton trading volume was 49,112 contracts, with 62,781 cleared. Open interest was 216,807 contracts, down 1,271 from the previous day. Certified stocks started at 137,063 bales, down 920 bales. Some parts of Texas need rain for a successful cotton crop. If rains don’t come, crops may suffer. ICE cotton trading is closed on Wednesday.
