ICE Cotton Update
Posted : December 06, 2022

ICE Cotton Update

ICE Cotton slips on weaker equities amid Russia – Ukraine tensions

ICE cotton futures dipped on Tuesday, tracking weakness in equity markets due to escalating Russia-Ukraine tensions and possible sanctions.

The most-active cotton contract on ICE - the second-month May contract – was down 0.85 cent, or 0.7%, at 120.31 cents per lb, at 13:05 EST. It traded within a range of 120.09 and 121.2 cents a lb.

"Clearly, the Russia-Ukraine situation is keeping everybody on the edge ... with the stock market being down, cotton is just sort of watching that," said Keith Brown, principal at Keith Brown and Co in Georgia.

Wall Street's main indexes slumped as the prospect of harsh Western sanctions against Russia over its conflict with Ukraine kept investors on edge.

Russian President Vladimir Putin recognized two breakaway regions in eastern Ukraine and ordered troops to those regions, inviting fresh Western sanctions. The dollar was down 0.1% against its rivals. A weaker greenback makes cotton less expensive for holders of other currencies.

Speculators cut net long positions in cotton futures by 5,169 contracts to 72,714 in the week to Feb. 15, data from the Commodity Futures Trading Commission showed on Friday.

Total futures market volume fell by 12,768 to 11,410 lots. Data showed total open interest fell 13 to 236,269 contracts in the previous session.

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