Cotton futures up on positive export sales data
Cotton futures prices edged higher on Thursday, supported by positive export sales data from the United States government and a drop in certificated stocks. Weekly export sales data showed net upland sales totalled 275,900 running bales of cotton for the week ended August 18, compared with 205,000 running bales (RB) in the prior week.
The drop in certificated stocks and export sales data likely counter-acted any negative impact on prices from rains in key producing regions that would be beneficial to crops of the natural fibre, according to Michael McDougall, director of commodities for Societe Generale in New York. The December cotton contract on ICE Futures US settled up 0.25 cent, or 0.37 percent, at 68.04 cents per lb. It traded within a range of 67.07 and 68.4 cents a lb. Certificated cotton stocks deliverable as of August 24 totalled 51,263 480-lb bales, down from 62,291 in the previous session.
The dollar index was down 0.04 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.27 percent. A scandal involving the alleged sale of falsely labelled Egyptian cotton products by an Indian textile manufacturer to US big box retailers highlights a stiff reality facing the high-end fibre market: there isn’t much Egyptian cotton any more.