Mumbai, 05 Nov (Commoditiescontrol): ICE cotton futures dipped slightly on Monday as investors turned their attention to the upcoming U.S. election to assess potential impacts on market conditions. Despite support from weaker U.S. dollar and gains in oil and grain markets, cotton prices edged lower.
December cotton futures fell 0.24 cents to close at 69.93 cents per pound, while March and May contracts settled at 72.27 and 73.76 cents, respectively. December futures saw a weekly decline of 33 points (0.46%).
The broader market offered some support, with crude oil prices rising $2.20 per barrel and the U.S. dollar index down by 398 points. However, traders remain cautious, awaiting both the election outcome and the USDA’s weekly export sales report due Thursday, along with updated crop condition data.
The USDA’s latest Crop Progress report showed that 97% of the U.S. cotton crop had bolls open as of October 27, with 52% of the crop harvested, ahead of the average rate. Crop conditions fell to 37% rated good-to-excellent.
Last week's export figures indicated increased bookings, with 189,436 RB recorded for the week ending October 24, marking the second-highest weekly total this marketing year, although overall sales still lag behind USDA estimates.
Additionally, The Seam reported 3,799 bales sold online on November 1 at an average price of 68.44 cents per pound. ICE cotton stocks remained stable at 174 bales, while the Cotlook A Index slipped 35 points to 81.70 cents per pound on November 1. The USDA’s Adjusted World Price (AWP) dropped by 74 points to 58.54 cents per pound.
Looking ahead, analysts expect market movement to be influenced by the election. December cotton futures may find support at 69.43 and 68.93 cents, with resistance levels at 70.71 and 71.49 cents.
(By Commoditiescontrol Bureau: 09820130172)
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