Market Movement from 26th Jul 2021 to 31st Jul 2021
• Market remained steady during the week but NY December contract first time crossed 91 Cents barrier in intraday trading. Although NY December closed with some minor weekly loss, technically picture looks sound.
• U.S. Export Sales for current year was almost nil. Now only one week remained for current year. Shipment was 2,47,000 Bales.
ICE cotton futures are primed for their best month since April on stable global demand, despite being on track for its worst day in nearly two weeks on Friday as the dollar rose and grain prices weakened. Cotton contracts for December fell 1.02 cent, or 1.1%, to 89.29 cents per lb, by 11:06 a.m. EDT (1506 GMT), falling as much as 1.6% earlier.
A positive spin on things first. This appears to be shaping up as one of those rare and blessed years where most producers will enjoy both a good crop and a good price. It doesn’t happen often. Prices (new crop Dec futures) have moved to the 87 to 88 cents area 4 times since the beginning of 2021. This most recent move has now carried us to new highs at better than 90 cents.
Cotton prices surged higher on the week climbing to an even 91 cents before succumbing to Friday’s selloff across all markets: financials, commodities, and equities. Weekly export sales were weak, and the outside markets suffered at week’s end. Nevertheless, the market showed strength between 90 and 91 cents as textile mills were forced to come to the board and fix prices.