NEW YORK: ICE cotton prices sank to a fresh nine-and-a-half-month low on Thursday, handing back the previous day's gains as demand slowed and stocks rose, underscoring concerns about oversupplies.
Fiber was the worst performing asset out of the 19 commodity markets tracked by the Thomson Reuters/Core Commodity CRB index .
The most-active March cotton contract on ICE Futures U.S. fell to an intraday low of 77.37 cents per lb, its weakest since mid-January. Prices settled down 1.13 cents, or 1.4 percent, at 77.46 cents per lb.
"If we don't see demand pick up, those burdensome supplies will continue to pressure prices," said Michael Smith of T&K Futures & Options, a Port Saint Lucie, Florida-based brokerage.
The spot December contract fell 1.45 cents, or 1.85 percent, to end at 76.52 cents a lb. Trading volume were heavy with a combined volume in the two front months of over 30,000 lots.
Exchange stocks rose from 181,132 bales to 190,507 bales on Tuesday, the most since July, exchange data compiled by Reuters showed.
Traders will be watching for weekly export sales data due for release on Friday amid expectations of weak numbers even though prices have been under pressure. Low prices typically spur demand from China, the world's No. 1 textile market.
"We expect tomorrow's export report to show lackluster sales and shipments," said INTL FCStone analysts.
"It appears the job of the market is now to probe lower in search of a level for physical demand."
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