Weak demand pulls cotton lower after six-day rally

By admin       2016-07-19

ICE cotton futures snapped a six-day rally to settle slightly lower on Monday on weak demand for the natural fibre. "There is too much cotton in the world, and the consumption level, it's not there," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas.ICE Cotton Futures had registered their biggest weekly gain in over five years last week, on a speculator-driven rally. The December cotton contract on ICE Futures US settled down 0.33 cent, or 0.44 percent, at 73.95 cents per lb. It traded within a range of 73.61 and 74.95 cents a lb. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.35 percent.China cotton futures on the Zhengzhou Commodity Exchange were down 0.19 percent to 15,385 yuan per tonne. The spread between China futures and US cotton was 67.46 cents by 4:14 pm EST (2014 GMT).The US Department of Agriculture's weekly conditions report on Monday said 54 percent of US cotton was in good to excellent condition, unchanged from the previous week.

Download App

# #

Member Login