Mumbai, 24 Jan (Commoditiescontrol): Cotton prices touched a two-week high on Friday, buoyed by robust export sales and a weaker U.S. dollar, which supported global demand for the natural fiber.
ICE cotton futures for March delivery rose by 0.97 cents to 68.44cents per pound earlier in the session, marking their highest level since January 10. As of 22:37 IST, the contract was trading at 67.59 cents per pound, up 0.12 cent or 0.18%.
The U.S. Department of Agriculture's (USDA) latest weekly export sales report revealed net sales of upland cotton for the 2024/2025 marketing year at 348,900 running bales (RB), the highest so far this season. This reflected a 10% increase from the previous week and a 62% jump from the prior four-week average. Export shipments stood at 222,600 RB, slightly lower by 1% week-on-week but up 32% compared to the four-week average.
A weaker U.S. dollar added to the upward momentum, making U.S. cotton more affordable for overseas buyers. The dollar index posted significant declines and was set for its worst weekly performance in over a year, as hints of a softer trade stance on China introduced fresh uncertainty in U.S. trade policies.
The combination of strong demand and favorable currency movements signals potential for continued strength in cotton prices, as traders closely monitor global market trends and trade developments.
(By Commoditiescontrol Bureau: +91 9820130172)
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