ICE No. 2 cotton settles on negative ground

Nearby months finished between 88 to 133 points lower. July ’24 futures opened at 82.33 cents/lb (-10) and immediately lost ground, falling 51 points lower within the first 45 minutes of the session. The spot month traded to the downside over the next few hours until briefly moving to modest gains, reaching a high of 82.50 cents/lb (+7) around 0730 GMT. Resistance was met and the lead month fell back under pressure, dropping to triple-point losses and to a low of 80.25 cents/lb (-218) by 1445 GMT. July cotton moved off its low but traded under pressure over the rest of the day to settle at 81.10 cents/lb (-133).

ICE estimated volume at 34,700 contracts, lower than yesterday’s 49,727. At the time cotton settled, the US dollar was trading higher while corn, soybeans and wheat were trending lower.

Total open interest was last reported 228,893 contracts (-1,796). July ’24 interest decreased by 3,508 contracts to 93,988 while December ’24, March ’24 and May ’24 interest increased by 1,115, 256 and 7 contracts, respectively, to 100,055, 20,699 and 4,904.

Certificated stocks were last reported at 193,426 bales, which included new certs for 621 bales. There were no bales awaiting review and no bales reported in both cert stocks and CCC loan as of May 28.

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