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According to a market analyst, the dollar index finally edged up, making cotton more expensive to buy. However, a stronger dollar restricted the fall in this natural fibre. The dollar index reached above the 104 level, while crude oil prices increased by 32 cents to $86.91 per barrel. A stronger crude oil price boosts the production cost of synthetic fibre, which benefits natural fibre.
The ICE cotton market experienced a significant decline for the fifth consecutive week, with all contracts falling by around one per cent.
The May contract dropped by 0.89 cent to 86.25 cents per pound.
A stronger dollar and rising crude oil prices influenced the market dynamics.
US cotton sowing began well, even as Texas faces drought concerns.
US cotton sowing has started as the moisture content is good. However, some areas in Texas are starting to experience drought tendencies, a negative factor for cotton output in the major exporting countries. Nonetheless, the projection of higher production from the International Cotton Advisory Committee (ICAC) remains effective in indicating a higher availability of cotton worldwide.
According to ICE data, certified cotton stocks increased to 93,324 bales, with an increase of 670 bales. The ICE cotton cash price lost 0.89 cent to 82.75 cents. The July 2024 contract slipped by 0.75 cent to 87.82 cents, while the October 2024 (new crop) contract dipped by 0.59 cent to 83.59 cents per pound. The December 2024 contract also faced negative sentiment and eased by 0.87 cent to 82.65 cents. March 2025 too was noted with a loss of 0.94 cent to 83.57 cents per pound.
Net export sales of Upland totalled 84,900 running bales (RB) for 2023-24, which was down 14 per cent from the previous week but up 4 per cent from the prior 4-week average. Pima net sales totalling 1,400 RB for 2023-24 were down 89 per cent from the previous week and 83 per cent from the prior 4-week average, according to the latest USDA sale report.
Fibre2Fashion News Desk (KUL)
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