Login ID:
Password:
Partner Login
Contact Us : 7066511911

ICE Cotton Cracks On Escalating Pandemic Threatening Global Growth

27 Feb 2020 7:23 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) – Cotton futures fell to a 2-1/2-month low on Wednesday as fear of an economic slowdown arising from the globally spreading coronavirus weighed on investor sentiment.

Front month cotton futures ended with more losses on Wednesday with contracts falling further by 78 to 115 points. May contract have posted 5 consecutive red candles for a net loss of 4.33 cents/lb.

Cotton contracts for May fell 83 points to settle at 65.47 cents per lb, after hitting their lowest since Dec. 5 at 65.40 cents. It traded within a range of 65.43 and 66.85 cents a lb. July Cotton closed at 66.08 cents, down 84 points. October cotton ended at 65.25 cents, down 115 points.

Cotton has fallen about 4% so far this month on virus woes.

March cotton remains in its delivery period. There have been a few notices tendered, but they have all been stopped by a strong commercial and otherwise have played no effective role in the market’s downdraft.

"Prices are down because there is spillover from the coronavirus long liquidation... It is difficult to quantify the coronavirus and people are unsure, which is leading to the liquidation of positions," said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.

The extent of economic hit remained unclear as the coronavirus spread further in South Korea and Italy, while Greece and Brazil reported their first cases of the virus.

Economic activity in China, epicenter of the outbreak, has widely been disrupted, fading expectations for increased Chinese imports of U.S. agricultural goods - as called for under a Phase 1 trade agreement between Washington and Beijing.

Investors await the weekly export sales report from the U.S. Department of Agriculture due on Thursday.

Total futures market volume fell by 4,676 to 32,923 lots. Data showed total open interest fell 1,877 to 194,910 contracts in the previous session.

Support and Resistance for Cotton #2 lies at 64.42 cents and 67.38 cents/lb, respectively.

(Commodities Control Bureau)


       
  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 :  
   

Top | Post Comment  

Latest Market Commentary
Tanzania Record Chickpea Exports Last Year Despite Indi...
Tur, Chana Trades Weak In Solapur
Long/Short Quantity Position In NCDEX Chana On 31st Mar...
NAFED Chana Trades In Delhi
Most Pulses Firm In Delhi Amid Lockdown-Thinned Activit...
more
Top 5 News
LME-Warehouse Stock Movements – 1st April
Tanzania Record Chickpea Exports Last Year Despite Indi...
Tur, Chana Trades Weak In Solapur
Long/Short Quantity Position In NCDEX Chana On 31st Mar...
NAFED Chana Trades In Delhi
Top 5 Special Reports
USD/INR (Apr. ’20) – Inflection Point: Testing a Short-...
USD/INR (Apr. ’20) – Pullback Underway / Testing a Shor...
USD/MYR
USD/CNY & USD/IDR
USD/ARS & USD/BRL—
Copyright © CC Commodity Info Services LLP. All rights reserved.