International cotton market

22-Nov-2024 08:51 AM

International cotton market
It looks like cotton prices have been experiencing some upward movement recently, with ICE cotton gaining 30 to 42 points on Thursday. Here's a breakdown of the key developments:

ICE Cotton Futures: Prices rose sharply in mid-session on Wednesday, gaining between 65 and 157 points. Despite some external market pressures, such as the US dollar index rising by 457 points and crude oil futures slipping by 23 cents per barrel, cotton prices remained resilient.

Sales and Stocks: SEAM (Southeastern American Market) reported online sales of 2,808 bales on November 19, with an average price of 64.18 cents per pound. ICE cotton stocks were unchanged at 13,274 bales as of Tuesday, indicating stable inventory levels.

Cotlook A Index: The Cotlook A Index, a benchmark for global cotton pricing, increased by 10 points, reaching 79.45 cents per pound as of November 19. This increase may reflect tightening supplies or stronger demand for cotton.

USDA AWP: The USDA’s Adjusted World Price (AWP), which helps set export prices for US cotton, rose by 24 points to 58.20 cents per pound last week. It is expected to be updated again today (Thursday), which could impact cotton futures and trading decisions.

Overall, despite external market influences like a stronger US dollar, cotton prices are holding firm, supported by steady demand and stable inventories. Any updates to the USDA AWP or changes in global market conditions could lead to further price fluctuations in the short term.