Mumbai, 04 Nov (Commoditiescontrol): With the U.S. presidential election approaching, financial markets are preparing for potential shifts, as both candidates have pledged changes that could impact economic policy. Despite the uncertainty, last week’s market movements showed minimal overall change, with commodity prices, including cotton, facing slight declines.
On Friday, ICE cotton futures bounced back from a seven-week low, supported by short-covering activity and solid open interest ahead of options expiration. Positive sentiment from oil and broader financial markets further bolstered cotton prices. December cotton futures rose by 0.60 cents, closing at 70.17 cents per pound, while March and May contracts settled at 72.33 and 73.83 cents, respectively. However, December futures ended the week down 33 points (0.46%).
The USDA’s latest Crop Progress report revealed that 97% of the U.S. cotton crop had bolls open as of October 27, with 52% harvested, slightly ahead of the average pace. Crop conditions dropped to 37% in the good-to-excellent category. Meanwhile, export data showed a rise in bookings to 189,436 RB in the week ending October 24, marking the second-highest weekly total for the marketing year, although cumulative sales remain behind USDA projections.
In terms of pricing, the USDA’s Adjusted World Price for cotton dropped by 75 points to 58.54 cents per pound. Weekly data from the CFTC indicated that managed money spec funds increased their net short positions by 4,455 contracts, totaling 10,649 contracts as of October 29.
Looking ahead, analysts anticipate market fluctuations due to the U.S. election. December cotton prices may find support at 69.25 and 68.32 cents, with resistance expected around 71.25 and 72.32 cents.
(By Commoditiescontrol Bureau: 09820130172)
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