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

Weekly: ICE Cotton Futures Hit Three-Month Low Amid Bearish Market Sentiment

18 Nov 2024 9:22 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai, 18 Nov (Commoditiescontrol): Last week ICE cotton futures faced challenges. The December contract softened 5.89% to end at 66.80 cents per pound, marking a three-month low. The decline reversed the gains of the previous week, driven by a stronger U.S. dollar, weak export data, and bearish trends across financial and commodity markets.

The December, March, and May contracts all recorded losses, with March settling at 68.91 cents and May at 70.28 cents per pound. A steady U.S. dollar, coupled with a $1.74 per barrel drop in crude oil prices, added to the downward pressure. Analysts noted significant speculative selling throughout the week, spurred by bearish technical signals and increased farmer selling. Additionally, cotton shipments from U.S. ports intensified supply-side concerns.

The USDA's weekly export sales report underscored weak demand, showing upland cotton sales at 153,300 running bales for the 2024/2025 season—a 33% drop from the previous week and 18% below the four-week average. Domestically, the U.S. cotton harvest advanced swiftly, with 75% of the crop harvested, surpassing the seasonal average by 8%. Ginnings reached 4.696 million bales by mid-November, marking a five-year high.

The USDA's updated report slightly lowered U.S. cotton production estimates to 14.19 million bales and reduced export projections by 200,000 bales to 11.3 million. Ending stocks were revised upward to 4.3 million bales, reflecting a less optimistic outlook for demand.

Market sentiment was further dampened by Federal Reserve Chair Jerome Powell's comments, signaling no urgency for rate cuts, which weighed on commodities and equities. The CFTC data revealed an increase in managed money funds’ net short positions, up by 2,934 contracts to 13,851 as of November 12, highlighting a bearish stance among speculators.

Looking forward, traders expect March cotton futures to find support at 68.28 and 67.64 cents, with resistance levels near 70.10 and 71.28 cents. Uncertainty around global trade dynamics and potential policy changes could shape the market trajectory in the coming weeks. Despite the current bearish sentiment, traders remain cautious as they monitor global demand and economic policy signals.

The week marked a sharp downturn for cotton futures amid a mix of weak export sales, a robust dollar, and broader market pressures. While technical factors hint at potential support levels, the market remains under the influence of macroeconomic and trade uncertainties.

(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 Special Reports
CFTC Data Shows Hedge Funds Extending Bearish Bets on C...
USDA Weekly Export Sales: Upland Cotton Sales Decline, ...
Weekly: Cotton Prices Decline Amid Stronger Dollar and ...
USDA Weekly Export Sales: Cotton Sales Drop, Pima Deman...
Weekly: ICE Cotton Eek Out Gains On Exports Sales; Trad...
more
Top 5 News
CFTC Data Shows Cobalt Market Weakens as Managed Money...
CFTC Data Reveals Surge in Bullish Copper Bets on COMEX...
CFTC Data:Corn Market Gains Momentum as Speculative Int...
CFTC Data: Speculators Maintain Bullish Bias in Coffee ...
CFTC Data: Cocoa Speculators Cut Longs Amid Market Cau...
Top 5 Market Commentary
Sugar No. 11: Managed Money Increases Short Bets Amid R...
MUMBAI MINOR METAL 08 Feb 2025
Cotton Arrivals Across Major Producing States Total 99,...
Cotton Prices Stable in Karnataka as Spinning Mills Due...
All India Steel Rate 08 Feb 2025
Copyright © CC Commodity Info Services LLP. All rights reserved.