International Cotton Market

20-Dec-2024 08:12 AM

International Cotton Market
The international cotton market has been experiencing some fluctuations recently. ICE cotton futures contracts closed lower on Thursday, with a drop of 10 to 32 points, influenced largely by external market conditions. The US dollar index rose by 401 points, and crude oil prices fell by $0.79 per barrel, both contributing negatively to cotton prices.
Export sales data for the 2024/25 season showed a 27.39% increase in upper cotton bookings compared to the previous week, reaching a total of 194,895 RB (running bales), with significant sales to Vietnam (42,400 RB) and Pakistan (37,000 RB). However, cotton shipments fell to a 5-week low of 128,573 RB, a 6.43% decline from the previous week, with notable shipments to Pakistan (25,500 RB) and Vietnam (23,800 RB).
Seam reported online sales of 2,299 bales on Dec. 18, with an average price of 63.46 cents per pound. ICE cotton stocks remained unchanged, totaling 20,113 certified bales. The Cotlook A Index dropped 40 points to 78.85 cents per pound, and the USDA's Adjusted World Price (AWP) decreased by 113 points, reaching 55.09 cents per pound on Thursday.
This combination of factors suggests that while cotton export bookings are strong, shipments are slower, and external economic factors like the strengthening dollar and falling oil prices are adding pressure to cotton prices.