ICE cotton futures climbed about 1.5 percent on Monday, supported by strong export demand for US cotton, ahead of the first notice day for the March contract due next week. The May cotton contract on ICE Futures US settled up 1.12 cent, or 1.45 percent, at 78.21 cents per lb. The contract touched a session high of 78.45 cents a lb, a peak since July 2014.
"The markets have been reacting to the strong export sales for US cotton, especially from China and Vietnam. There is less competition from other countries, with the currency situation in India also helping," said Gabriel Crivorot, analyst at Societe Generale in New York.
The premium for May futures to March futures hit a fresh all-time high on Monday.
"When the spread widens it gives the mills decent incentive to roll over their positions. The May prices are rising faster than the March ones. If the mills are short March they need to buy it back," Crivorot added.
The March cotton contract settled up 0.79 cent, or about 1 percent, at 76.61 cents per lb on Monday.
The May cotton contract on ICE Futures US settled up 1.12 cent, or 1.45 percent, at 78.21 cents per lb. It traded within a range of 77.19 and 78.45 cents a lb, the highest since July 2014.
Total futures market volume fell by 6,873 to 66,581 lots. Data showed total open interest fell 1,016 to 282,402 contracts in the previous session.
A surge in local cotton prices ahead of next month's planting season, and a crackdown on ersatz Egyptian cotton worldwide, are reviving interest in cultivating Egypt's most famous export, the silky soft cotton prized by makers of luxury bedding and clothing.
Comments
Comments are closed.