Mumbai, 06 Dec (Commoditiescontrol): ICE cotton futures edged lower on Thursday as a weak federal export sales report pressured the market, though losses were cushioned by a softer U.S. dollar.
The benchmark March contract declined 15 points to close at 71.10 cents per pound, with the May and July contracts also slipping to 72.38 cents and 73.34 cents, respectively.
The U.S. dollar index fell sharply, down 565 points, offering some relief to cotton prices. However, crude oil prices dipped by 15 cents per barrel, reflecting mixed performance in outside markets. Despite recent headwinds, the March contract managed a 10-point gain for November, signaling resilience in underlying fundamentals.
Thursday’s Export Sales report revealed a three-week low for the 2024/25 marketing year, with net sales of 170,663 running bales (RB), down 47% from the prior week and 33% below the four-week average. However, weekly export sales improved, totaling 157,500 RB, a 21% increase from the previous week. Vietnam and Pakistan were the primary buyers, purchasing 84,300 RB and 36,700 RB, respectively.
Shipments reached 157,546 RB, the third-highest for the marketing year, marking a 20.89% increase week-on-week and 13.22% above the same period last year. Pakistan received the largest share at 31,500 RB, followed by China at 24,800 RB. Cumulative shipments for the year stood at 2.145 million RB, still trailing last year’s pace by 12.65%.
October Census data showed a 4-year high in cotton shipments (excluding linters) at 573,156 bales, up 14.06% from September and 45.36% higher than October 2023. Meanwhile, online sales on The Seam totaled 7,289 bales on December 4, averaging 67.62 cents per pound. ICE-certified stocks remained unchanged at 13,274 bales.
The USDA Adjusted World Price (AWP) increased by 21 points to 57.74 cents per pound, while the Cotlook A Index dropped by 15 points to 81.60 cents per pound.
Technically, cotton futures remain under pressure, trading below key moving averages. Support for the March contract is pegged at 70.78 and 70.45 cents, with resistance at 71.68 and 72.25 cents. Market participants expect continued volatility, driven by subdued demand from major importers like China and intensifying global competition.
(By Commoditiescontrol Bureau: 09820130172)
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