Mumbai, 21 May (Commoditiescontrol): ICE cotton futures were largely unchanged on Monday as steady demand and positive sentiment in broader financial markets were offset by favorable U.S. weather conditions aiding crop progress. The July cotton contract rose by 14 points to close at 76.03 cents per pound. December contracts inched up by 4 points to 75.01 cents per pound, and March contracts added 5 points to settle at 76.63 cents per pound. The July contract saw a weekly decline of approximately 1.7%.
External market influences were not supportive, with crude oil down 35 cents and the US dollar index climbing 190 points.
The USDA's National Agricultural Statistics Service (NASS) reported that 44% of the U.S. cotton crop was planted as of Sunday, an 11% increase from the previous week, aligning with the five-year average and 2% above last year’s pace.
The USDA's weekly export sales report indicated net sales of 156,500 running bales (RB) for 2023/2024, marking a 38% decrease from the prior week, with exports down 4% to 238,800 RB.
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, attributed to a smaller carry-in. However, 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 3,509 bales on May 16, totaling 192,348 bales. The Cotlook A Index rose by 75 points on May 16 to 85.85 cents per pound, while the Adjusted World Price (AWP) dropped 18 points to 59.46 cents, effective through Thursday.
Large managed money speculators added 1,615 contracts to their net long position as of May 14 but remained net short by 15,314 contracts, the largest net short position in nearly 11 months.
Traders are closely watching technical support levels for the July cotton contract at 75.36 and 74.69 cents, with resistance at 76.84 and 77.65 cents.
Despite occasional rallies, the cotton market remains under pressure from weak demand and profit-taking. Traders continue to monitor weather developments and planting progress for future price direction. Additionally, U.S. President Joe Biden's recent announcement of steep tariff increases on Chinese imports may influence market dynamics.
(By Commoditiescontrol Bureau: 09820130172)
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