Cotton prices slip on worries over global demand
ICE cotton futures fell 1% on Monday on worries over global demand for the natural fibre amid a surge in coronavirus cases. The cotton contract for March was down 0.74 cent, or 1%, at 72.50 cents per lb by 11:38 a.m. EST (1638 GMT), after rising more than 1% in the previous session.
It traded within a range of 72.41 and 73.48 cents per lb.
"We are seeing a little bit of selling pressure following Friday's positive session. At the same time, there is may be not as much demand at the moment to prop up the prices," said Bailey Thomen, cotton risk management associate with StoneX Group.
"The long-term trend though it does remain to the upside. But on the fundamental side, demand from consumer side is certainly a concern with Covid-19 and economic downturn. We are seeing a little bit of uncertainty in the market."
More than 62.69 million people have been reported to be infected by the novel coronavirus globally and 1,460,921 have died, according to a Reuters tally.
Governments across Europe are trying to navigate between avoiding spreading the coronavirus over the Christmas holiday season and allowing people to celebrate with family and friends.
Cotton's losses came despite a subdued dollar, which hit its lowest level in 2-1/2 years. Meanwhile, the first two vaccines against the novel coronavirus could be available to Americans before Christmas, US Health Secretary Alex Azar said on Monday.
Total futures market volume fell by 3,807 to 10,107 lots. Certificated cotton stocks deliverable as of Nov. 24 totalled 116,316 480-lb bales, up from 115,929 in the previous session.