AGL 40.40 Increased By ▲ 0.20 (0.5%)
AIRLINK 129.25 Increased By ▲ 0.14 (0.11%)
BOP 6.81 Increased By ▲ 0.21 (3.18%)
CNERGY 4.13 Increased By ▲ 0.10 (2.48%)
DCL 8.73 Increased By ▲ 0.28 (3.31%)
DFML 41.40 Increased By ▲ 0.15 (0.36%)
DGKC 87.75 Increased By ▲ 0.75 (0.86%)
FCCL 33.85 Increased By ▲ 0.50 (1.5%)
FFBL 66.40 Increased By ▲ 0.50 (0.76%)
FFL 10.69 Increased By ▲ 0.15 (1.42%)
HUBC 113.51 Increased By ▲ 2.81 (2.54%)
HUMNL 15.65 Increased By ▲ 0.42 (2.76%)
KEL 4.87 Increased By ▲ 0.09 (1.88%)
KOSM 7.62 Decreased By ▼ -0.21 (-2.68%)
MLCF 43.10 Increased By ▲ 1.20 (2.86%)
NBP 61.50 Increased By ▲ 1.00 (1.65%)
OGDC 192.20 Increased By ▲ 9.40 (5.14%)
PAEL 27.05 Increased By ▲ 1.69 (6.66%)
PIBTL 7.26 Increased By ▲ 1.00 (15.97%)
PPL 150.50 Increased By ▲ 2.69 (1.82%)
PRL 24.96 Increased By ▲ 0.40 (1.63%)
PTC 16.25 Increased By ▲ 0.01 (0.06%)
SEARL 71.30 Increased By ▲ 0.80 (1.13%)
TELE 7.25 Decreased By ▼ -0.05 (-0.68%)
TOMCL 36.29 Decreased By ▼ -0.01 (-0.03%)
TPLP 8.05 Increased By ▲ 0.20 (2.55%)
TREET 16.30 Increased By ▲ 1.00 (6.54%)
TRG 51.56 Decreased By ▼ -0.14 (-0.27%)
UNITY 27.35 No Change ▼ 0.00 (0%)
WTL 1.27 Increased By ▲ 0.04 (3.25%)
BR100 9,957 Increased By 115.5 (1.17%)
BR30 30,770 Increased By 733.6 (2.44%)
KSE100 93,292 Increased By 771.2 (0.83%)
KSE30 29,017 Increased By 230.5 (0.8%)

NYBOT cotton futures settled near session highs Tuesday on speculative and options-related buying, with some analysts saying the market should ride technical buying higher although fundamentals remain cloudy, dealers said.
Key December cotton settled up 1.19 cents at 45.95 cents a lb after trading from 44.32 to 46 cents. March gained 0.90 to 47 cents and distant month's rose 0.15 to 1.16 cents.
"Its bearish exhaustion to the downside," said Keith Brown, president of commodity trading firm Keith Brown and Co in Moultrie, Georgia.
He said a "trickle of short-covering has turned into a stream" as late buying from speculators and option ring players powered nearby cotton contracts to higher territory.
Early bouts of profit-taking nudged cotton down to its lows, but the market turned when speculators and commercial players began chasing fibre contracts to higher ground, brokers said.
Fundamentally, cotton has been weighed down by near ideal growing weather in the US and elsewhere. But some analysts feel the move south has been overdone and expectations of bumper cotton crops has likely been factored into the cotton market.
"The markets moved in perfection," Brown said, alluding to the US cotton crop. He added that late-season hurricanes could still hammer wide swathes of the US cotton belt and this will be driven home by Hurricane Alex which is set to deal a glancing blow to the Outer Banks off North Carolina.
In fact, in the last two years, late-season storms drenched the US Delta states of Louisiana and Mississippi just before the cotton was to be harvested.
Traders said December could spark further short-covering if it closes above 46 and then 47 cents in the coming sessions.
"If December can go over 46 and 47 we may have (set) a low in cotton," one said.
Analysts said the market will be looking toward the last export sales report from USDA due Thursday, and then the critical USDA's monthly supply/demand report to be released on August 12.
Brokers Flanagan Trading Corp pegged support in the December contract at 45.50 and 44.20 cents with resistance at 46 and 46.65 cents.
Floor dealers said estimated final volume amounted to 7,200 contracts, up from Monday's tally of 5,615 lots. Open interest fell 289 lots to 79,519 lots as of August 2.

Copyright Reuters, 2004

Comments

Comments are closed.