Foreign news on March 16, Intercontinental Exchange (ICE) cotton futures rose on Tuesday on expectations that recent sparse rainfall may not alleviate the drought in Texas. .
ICE May cotton contract rose 0.20 cents, or 0.23%, to settle at 86.92 cents per pound.
“People are worried about the continued drought in West Texas; despite the rain, it is still dry.” Jim Nunn, owner of Nunn Cotton, a cotton brokerage in Tennessee, said.
Cotton futures prices fell 2.3% in the previous trading day on expectations that rainfall in West Texas would be beneficial to crops.
A stronger U.S. dollar has limited cotton price gains by making U.S. dollar-denominated futures more expensive for buyers holding other currencies.
Fitch International said in a report: “We believe that the strong economic recovery and demand recovery after the epidemic in 2021 will lead to tight supply, and cotton prices will remain relatively high in the next few quarters. High level.” Fitch raised its 2021 average cotton price forecast to 87 cents per pound.
In the latest export sales report, data released by the U.S. Department of Agriculture showed that in the week ending March 4, U.S. upland cotton export sales in 2020/2021 increased by 212,000 bales. An increase of 25% from the previous week and an increase of 5% from the average of the previous four weeks.
As of March 15, ICE’s deliverable No. 2 cotton futures contract inventory remained unchanged at 99,706 bales.