– Reporting Period 09 – 22 October 2024 –
December futures have moved within a narrow range of 70.62 to 72.66 ct/lb in the reporting period, with a slight upward trend towards the end. However, there are also signs that December futures could fall slightly below the 70 cents margin in the future.
As a result of crop losses in the Southeast and Southwest, U.S. cotton production could decline overall this season. On the other hand, numerous U.S. farmers have been expecting higher yields. However, forecasts that consider a smaller U.S. crop do not appear to have affected the price development. It has rather been the overall reduced global demand for imports that has put pressure on cotton prices. Spinning mills have often been operating at reduced capacity owing to a lack of demand. This is due to lower consumer demand for clothing because of inflation and the overall uncertainty in global affairs.
According to reports, a smaller cotton crop is expected in India as a result of excessive rainfall and a smaller area under cultivation. Thus, India’s demand for cotton imports could increase accordingly.
The U.S. dollar has continued to gain strength, making cotton increasingly expensive in foreign trade.