NYBOT cotton futures finished mixed Monday in subdued trade, with the market waiting for several government reports to provide direction on the next move, analysts said.
Key December cotton settled up 0.35 cent at 47.33 cents a lb after dealing from 46.60 to 47.55 cents. March added 0.12 to 49.20 cents. Aside from one contract, the rest ranged from 0.15 cent firmer to 0.15 cent softer at the close.
"It's just (like) watching paint dry," said Keith Brown, president of commodity firm Keith Brown and Co. in Moultrie, Georgia. "There's been a lot of inactivity."
Small speculators established a trading range in the first hour of business and fibre contracts did not stray outside that band until the close of business, brokers said.
A long holiday in China, the world's biggest producer and consumer of cotton, kept several players on the sidelines.
Analysts said cotton will likely drift and the trade will be content to wait for several reports from the US Department of Agriculture.
One would be the weekly USDA crop progress report due out later on Monday. The next would be the weekly USDA export sales data on Thursday and the more vital one would be the monthly supply/demand report on October 12.
The weekly cotton letter of Jim Nunn of Nunn Cotton Co. said: "The fundamentals point lower, especially ahead of the next USDA crop report October 12. But worries about the crops in China and West Texas may offer support to our market."
The US is poised to harvest a record crop, which will reach 20.9 million (480-lb) bales, according to USDA data. China is seen producing 29.5 million bales of cotton.
Brokers Flanagan Trading Corp. put support in December delivery at 47.10 and 46.35 cents, with resistance at 47.75 and 48.30 cents.
Floor dealers pegged estimated final volume at a meagre 4,300 lots, down from Friday's 7,610 lots. Open interest rose 769 lots to 72,689 lots as of October 1.
Comments
Comments are closed.