Mumbai, 18 May (Commoditiescontrol): ICE cotton futures edged lower on Friday, heading for a weekly loss as weak demand and profit-taking weighed on the market. July cotton contracts fell by 35 points, closing at 75.89 cents per pound, while December and March contracts decreased by 22 points each to 74.97 cents and 76.58 cents per pound, respectively. The July contract has declined approximately 1.7% this week.
Cotton prices had risen over 2% on Thursday as investors capitalized on a recent price drop. However, this rally was short-lived as weak demand overshadowed the market. The U.S. Department of Agriculture's (USDA) weekly export sales report on Thursday revealed net sales of 156,500 running bales (RB) for 2023/2024, a 38% decrease from the previous week. Exports also fell by 4% to 238,800 RB.
The latest Crop Progress report indicated that cotton planting is progressing in key regions. In Texas, 28% of the crop has been planted, aligning with the average, while Georgia is slightly ahead at 35%, 3% above the average. However, adverse weather forecasts are expected to slow planting across the Southeast, including eastern Texas.
Globally, the USDA’s World Agricultural Outlook Board (WAOB) revised its carryout estimates for the 2023/24 cotton season downward by 2.6 million bales to 80.48 million, due to a smaller carry-in. Despite this, the WAOB projected an increase in 2024/25 ending stocks by 2.53 million bales to 83.01 million.
ICE certified cotton stocks increased by 5,969 bales on May 15, reaching 188,839 bales. The Seam reported the sale of 216 bales on May 16 at an average price of 59.95 cents per pound. The Cotlook A Index rose by 90 points on May 16 to 85.10 cents per pound, while the Adjusted World Price (AWP) dropped 18 points to 59.46 cents, effective through next week.
Large managed money speculators added 1,615 contracts to their net long position as of May 14, but remained net short 15,314 contracts, the largest net short position in nearly 11 months.
Traders anticipate technical support for the July cotton contract on Monday at 75.35 and 74.81 cents, with resistance at 76.63 and 77.37 cents.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
