login_img.jpg
Login ID:
Password:
Partner Login
Contact Us : 7066511911

ICE cotton futures snap falling streak; softer dollar, firm equities extend support

30 Apr 2024 8:42 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai, 30 Apr (Commoditiescontrol): ICE cotton futures ended higher on Monday, snapping previous few sessions of decline, helped by positive sentiment in the wider financial markets, while a weaker U.S. dollar also lent support to the natural fiber.

Global financial markets advanced Monday led by strong earnings by US tech giants Alphabet (Google parent company) and softer dollar prompting buying.

Limiting gains, the softer tone in oil prices on peace deal between Israel - Hamas, making cotton-substitute polyester less expensive.

ICE Cotton contracts for May closed at 80.02 cents, 62 points higher. Jul settled at 81.52 cents, adding 62 points. Dec ended 94 point strong at 78.25 cents. The front month contract recorded just 12 points net loss for the week.

Cotton complex was largely influenced by the mixed outside market forces such as crude oil and dollar, which has provided little support. There were 198 contracts delivered against May cotton, all by BNP Paribas Securities.

Last week, the U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 177,100 running bales for 2023/2024, up 21% from the previous week and 73% from the prior four-week average. The report also showed exports of 261,700 running bales, down 2% from the previous week and 18% from the prior four-week average.

On planting front, weekly Crop Progress data indicated 15% of the US cotton crop planted a of April 28, a 4% move on the week and 1% ahead of the 5-year average pace.

According to the World Agricultural Supply and Demand Estimates (WASDE) report on Thursday, world trade for 2023/24 was projected 700,000 bales higher this month to nearly 44 million.

USDA left the US cotton balance sheet alone this month, as they wait for final production data next month. Stocks are still at 2.5 million bales, though the US average farm price was trimmed by a penny to 76 cents. The World cotton S&D table was a 0.26 million bale cut to stocks at 83.08 million bales, mainly on tighter carryover from the previous crop year.

World trade for 2023/24 was projected 700,000 bales higher this month to nearly 44 million, as a 1.3-million-bale increase in China's imports was partially offset by reductions for Pakistan and Indonesia, as per the report.

Global ending stocks for 2023/24 were projected down nearly 300,000 bales in April as lower stocks across West Africa, Australia and Brazil more than offset higher supplies in China, the report added.

ICE certified cotton stocks were up another 2,166 bales on April 26 at 183,596 bales. The Cotlook A Index was unchanged on April 26 at 87.80 cents/lb. The AWP dropped another 85 points to 61.33 last Thursday and is in effect through this Thursday.

Commitment of Traders data confirmed a continuing exodus of the managed money spec longs in cotton futures and options during the week that ended on April 23. They exited 10,779 longs during the week, while their compatriots added 15,862 new shorts. The spec fund net long on Tuesday night had declined to 9.501 contracts.

For Tuesday, support for the Jul Cotton contract is at 80.92 cents and 80.32 cents, with resistance at 82.31 cents and 83.10 cents.

(By Commoditiescontrol Bureau: 09820130172)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Post Comment  

Latest Market Commentary
ZCE Cotton And Yarn Evening Closing - 24 JUNE 2024
ICE/ZCE Daily Rates Update ( Time: 20:25 ) - 24 JUNE 20...
India's Cotton Yarn Exports Decline in May 2024
Cotton Prices Stable in Andhra & Telangana Amid Limited...
Cotton Prices Surge in Maharashtra Amid Rise in Demand,...
more
Top 5 News
ZCE Cotton And Yarn Evening Closing - 24 JUNE 2024
DCE Oil Complex Evening Closing - 24 JUNE 2024
Small Cardamom Prices Continue Upward Trend Amid Reduce...
Clove Prices Remain Stable Across Markets
Pepper Prices Decline in Domestic and Vietnam Markets
Top 5 Special Reports
Weekly: ICE Sugar Return To Losses on Robust Brazilian ...
Weekly: Cotton Extends Week of Losses as Strength of Do...
US soybean net sales for June 7-13 at 556,500 MT, up 48...
US cotton net export sales for June 7-13 at 189,000 RB,...
Government Raises Kharif Crop MSPs for 2024-25, Enhanci...
Copyright © CC Commodity Info Services LLP. All rights reserved.