Cotton futures settled firmer Friday on buying by small speculators in quiet dealings and the subdued tone may well spill over into next week, brokers said. New York Board of Trade's December cotton contract added 0.46 cent to finish at 49.21 cents per lb, dealing from 48.45 to 49.25 cents, which is close to the band on Thursday of 48.25 to 48.98 cents.
March rose 0.50 to 52.45 cents and the rest increased 0.25 to 0.60 cent. "The market seems content to have a (nearly) inside day. It's been featureless," said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana.
Traders said the December contract could see some follow-through buying now that it finished over a technical target of 49.15 cents, but the major barrier would be 50 and 50.50 cents.
Absent that, traders said there's little to do except watch fibre contracts drift in a band, with some saying a probe of 48 and then 46 cents seems likely in the days ahead. Analyst O.A. Cleveland said the market's focus will soon turn to when investment funds "begin moving their record positions, rolling from December to March. Thus, December will continue to be pressured."
Open interest in the December contract fell 565 to 117,541 lots as of October 19 while interest in March amounted to 43,977 lots, up 85 contracts. Over the short term, a report by First Capitol Group's Sharon Johnson said the 48-cent level may be "under attack again but trade interest is quite heavy at that level suggesting very heavy spec/fund selling is necessary if daily and weekly support at that level is to be breached."
Brokers Flanagan Trading Corp put resistance in December delivery at 49.30 and 50 cents, with support at 48.25 cents. Floor sources said final volume hit around 7,500 lots, down from Thursday's tally of 11,230 lots. Open interest fell 364 lots to 185,310 lots as of October 19.
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