Login ID:
Partner Login
Contact Us : 7066511911

ICE Cotton Futures Decline Amid Favorable Planting Conditions and Economic Pressures

15 May 2024 8:45 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai, 15 May (Commoditiescontrol): Cotton futures on the Intercontinental Exchange (ICE) took a hit, dropping over 3% to reach the lowest point in nearly two weeks on Tuesday. The decline came amid improved weather conditions and positive progress in cotton planting, which eased some concerns about supply shortages.

July cotton contracts saw a significant reduction, closing 300 points down at 74.63 cents per lb. October contracts also fell, decreasing by 148 points to settle at 75.58 cents, while March contracts ended the day 142 points weaker at 75.70 cents.

The broader market was affected, with July contracts hitting the limit down of 3 cents, prompting an expansion of limits to 4 cents for Wednesday's session. Contributing to the downward pressure, crude oil prices also fell by $0.72, influenced by U.S. data indicating persistent inflation and OPEC’s decision to maintain its demand forecast. Higher oil prices typically raise the cost of cotton-substitute polyester, thus impacting cotton demand.

From a cultivation perspective, the latest Crop Progress report noted that cotton planting in Texas is on par with the average at 28% complete, and Georgia is progressing well, 3% ahead of the average at 35%. However, forecasts predict a slowdown in planting across a broad area of the Southeast, including eastern portions of the Texas panhandle due to expected precipitation.

Globally, the USDA’s World Agricultural Outlook Board (WAOB) adjusted its carryout estimates for the 23/24 cotton season downwards by 2.6 million bales to 80.48 million, citing a smaller carry-in. However, it projected an increase in the 24/25 ending stocks by 2.53 million bales to 83.01 million.

Trade dynamics also showed a robust demand for U.S. cotton, with USDA's latest weekly export sales report indicating net sales of 253,700 running bales for the 2023/2024 season. Despite this, China’s agriculture ministry anticipates an annual decline in imports of key commodities including cotton for the upcoming 2024/25 crop year.

In market specifics, ICE certified cotton stocks were reported down by 1,046 bales on May 13, totaling 165,265 bales. Additionally, the Cotlook A Index fell another 120 points to 85.20 cents/lb.

As traders and analysts monitor these developments closely, technical support for the July cotton contract for Wednesday is anticipated at 73.54 and 72.44 cents, with resistance levels expected at 76.82 and 79.00 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

   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
ICE Cotton Futures Rebound as Traders Cover Shorts Ahea...
ZCE Cotton And Yarn Evening Closing - 18 JUNE 2024
ICE/ZCE Daily Rates Update ( Time: 20:18 ) - 18 JUNE 20...
Cotton Arrival Up in Madhya Pradesh; Cotton Candy Price...
Cotton Prices in Karnataka Remain Stable; Daily Arrival...
Top 5 News
Global equity/currency market update: Asian Shares Reac...
Rising Brazilian Sugar Production Pressures Global Pric...
ICE Cotton Futures Rebound as Traders Cover Shorts Ahea...
CBOT Wheat Futures Hit Two-Month Lows Amid U.S. Harvest...
Crude Oil Prices Edge Up Amid Geopolitical Tensions
Top 5 Special Reports
Weekly: ICE Sugar Futures Revived By ISO's Global Defic...
Weekly: Cotton Prices Slide for Third Consecutive Week ...
India Plans Boost in Arhar and Urad Dal Production to T...
US soybean net sales for May 31-June 6 at 377,100 MT, u...
US cotton net export sales for May 31-June 6 at 177,100...
Copyright © CC Commodity Info Services LLP. All rights reserved.