New York cotton futures mixed

Cotton futures closed mixed Friday as switch trade dominated business and market players said a government crop report merely confirmed the bullish outlook for the market, brokers said.
The New York Board of Trade's July cotton contract eased 0.21 cent to finish at 52.61 cents per lb, moving from 52.60 to 53.48 cents.
New-crop December rose 0.01 to 58.14 cents, in a band from 58 to 58.70 cents. It was the best close for the contract since trading above 58 cents in mid-April.
The rest were 0.10 cent firmer to 0.05 cent softer.
"It's been mostly switches," said Frank Weathersby of brokers Affinity Trading in Fort Walton Beach, Florida.
He said the process of moving positions from the spot July contract and into the new-crop December contract will be featured in the pit until July goes into delivery on June 26.
Open interest in July fell 4,861 to 75,139 lots as of June 8 while interest in the now most-active December contract went up 5,523 to 75,710 lots.
The market took note of the monthly supply/demand report from the US Agriculture Department. Analysts feel the data confirms the bullish outlook for cotton going into the 2006/07 marketing year (August/July).
USDA reduced its estimate for 2006/07 world cotton ending stocks to 47.09 million (480-lb) bales from last month's 47.42 million. It cut world output to 114.64 million bales from 115 million and raised global consumption to 122.46 million against 122 million.
"All it (the USDA report) does is reinforce the bullish report we had last month," said Mike Stevens of brokers SFS Futures in Mandeville, Louisiana.
Analysts feel that drought gripping cotton areas in the United States and China, the world's largest consumer, will soon lead to tight supplies and spur prices higher.
"The new-crop New York (cotton) contracts will continue to ratchet higher based on the growing global demand for cotton. Market prospects will be further boosted by troublesome crop prospects around the world," said a weekly report by analyst O.A. Cleveland.
Broker Flanagan Trading Corp sees resistance in the July contract at 53.20 and 53.90 cents, with support at 52.50 and 52.15 cents. Floor dealers estimated final volume at 25,000 lots, compared with the previous 34,116 lots. Open interest in the cotton market rose 1,695 to 178,461 contracts as of June 8.