Sunday, November 28th, 2021
Home »Cotton and Textiles » Pakistan » Cotton dips near two-week low on demand, trade woes
Cotton fell to a near two-week low on Tuesday, weighed down by weak demand from China as the trade deal between Beijing and Washington seemed far from closing in, as against robust crop expectations from United States and Brazil.

The most-active cotton contract on ICE Futures US December fell 0.64%, at 60.52 cents per lb as of 1:54 p.m. EDT (1754 GMT).

It traded within a range of 59.65 and 60.96 cents a lb.

"It's all about demand. The demand from China is weak and odds of any deal between U.S and China are low... cotton is going to be on the defensive for a while," said Ed Jernigan, chief executive of Jernigan Global, a cotton textile supply chain manager.

Cotton prices have slipped about 18% so far this year due to the drawn-out tariff war between the natural fiber's top consumer China and one of the top producers - the United States.

On Tuesday, US President Donald Trump delivered a stinging rebuke to China's trade practices saying he would not accept a "bad deal" in the ongoing trade negotiations.

"You have got large US and Brazilian crops that need to move and the return to the price rally is just going to attract selling," Jernigan added.

The weekly crop condition report released by the US Department of Agriculture's (USDA) on Monday showed weaker crop ratings for the third consecutive week.

Total futures market volume rose by 689 to 17,142 lots. Data showed total open interest gained 1,435 to 233,791 contracts in the previous session.

Meanwhile, traders in India, the world's biggest cotton producer, have been struggling to sign export contracts for the new season crop due to higher local prices, an industry official said.

Copyright Reuters, 2019


the author

Top
Close
Close