Anxiety over delay in implementation of trade pact between USA and China, the ICE Cotton Futures took a 2 percent dip. The reaction was compounded by the fact that dollar was becoming firmer. ICE Futures US registered its most active cotton contract was in Previous May, the figure standing at 1.42 cents or 1.88 percent at 74.30 cents per lb. Trading took place on basis of the contract between 74.02 cents and 75.88 cents.
Keith Brown, principal of Cotton Brokers Keith Brown and CO in Moultrie voiced his concern that perception about delay in the US China trade agreement which may push the pact till April end 2019 and a stronger dollar will weigh against the pricing.
With US president Donald Trump expressing the sentiment that he was not in a hurry to seal a trade pact with China, feelers have gone out that Trump’s meeting with China’s Xi Jinping will take place only in April ending.
The dollar index rose by 0.2 percent as the dollar gained for the first time in weeks. The US dollar gained on Thursday for the first time in a week, with the dollar index up 0.2 percent. With the greenbacks registering a stronger value against other currencies the price of cotton is also rendered more expensive for other countries buying in dollars.
The quantum of dip in the cotton futures market stood at 9,401 and the revised amount stood at 29,514.