NEW YORK: ICE cotton futures rose on Tuesday as sentiment got a fillip from a record rise in US retail sales.
Cotton contracts for December rose 0.39 cent, or 0.7%, at 59.40 cents per lb by 12:36 p.m. ET (1637 GMT).
"Prices are being driven by exuberance in the stock market, which stems from retail investors creating tremendous buy-side liquidity. Cotton is benefiting from this sentiment at the moment, but I don't expect it to last," said Peter Egli, director of risk management at British merchant Plexus Cotton
Wall Street surged after a Commerce Department report showed overall US retail receipts rose 17.7% last month, the biggest advance on record, bolstering hopes of a faster-than-expected economic recovery. Broader markets are also drawing support from data showing reduced Covid-19 death rates in a trial of a generic steroid drug.
The coronavirus pandemic led to mill closures across the world and roiled demand for apparel in which cotton is a primary raw material.
With major economies now reopening, market participants expect demand to pick up gradually.
"There are some signs of improving demand, but there is a long way to go until we get back to normal," Egli said.
Exacerbating fears over a second wave of infections, Beijing's city government on Tuesday raised its coronavirus emergency response level to II from III, according to state media.
Total futures market volume fell by 19,297 to 15,051 lots. Data showed total open interest fell 2,895 to 171,051 contracts in the previous session.
Certificated cotton stocks deliverable as of June 15 totaled 31,799 480-lb bales, down from 32,435 in the previous session.-Reuters
NEW YORK: The following were the fluctuations observed during the day:
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Current Session Prior Day
Open High Low Last Time Set Chg Vol Set
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Jul'20 59.40 60.00 59.15 59.68 13:05 - 0.67 3878 59.01
June 16
Oct'20 59.59 59.83 59.26 59.35 11:32 - 0.70 12 58.65
June 16
Dec'20 58.35 59.37 58.35 58.79 13:05 - 0.44 12456 58.35
June 16
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