ICE Cotton Update 30-Nov-2020
Posted : December 02, 2020

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.

Latest News
Monthly Rate Movement Report – Nov 2020
  • Monthly Rate Movement Report – Nov 2020 • Daily Physical Spot Rate • MCX Cotton Daily Cl
Shurley on Cotton
  • 74-Cent Potential If The Right Factors Align November 30, 2020 Nearby March futures made it a
Thompson On Cotton
  • Seeing A Trend Toward 80 Cents? November 29, 2020 Given it was a holiday week with traders’ mi