New York cotton mixed

Cotton futures finished slightly mixed on Tuesday as rollover business dominated trade, while other participants held to the sidelines waiting for the USDA's monthly report on world cotton supplies, traders said.
"The market is just gearing up for the (USDA's) supply/demand report that comes out Thursday morning. We did pretty big volume today because we were rolling from December to March. You can certainly tell that by the closings," said Keith Brown of Keith Brown and Co in Moultrie, Georgia.
The New York Board of Trade's December cotton contract ended 0.03 cent lower at 49.89 cents per lb, after rallying to 50.25, its highest level in a week, The session low was 49.80 cents. March rose 0.12 to 54.07 cents. The rest finished mostly higher, up 0.05 to 0.11 cent.
Analysts said cotton participants have their eyes on the US Agriculture Department's monthly supply/demand report due Thursday, waiting for clues to guide their next big move. They said the US figures are expected to show only slight changes, while estimates for other large consuming countries will be more closely watched.
In particular, China's consumption figures will get a keen viewing. China remains the world's top consumer, but its consumption figures have been down in the past few weeks despite its bumper crop. Otherwise, contract switches out of December cotton and into March futures should continue to keep traders busy.
As of November 6, open interest in the December contract had fallen by 3,435 to 92,114 lots, while holdings in March rose by 3,894 to 64,855 lots. On Friday, traders said options expire on December futures and may keep prices around the 50 cents a lb level until then.
The December contract goes into first notice on November 22, just ahead of the US Thanksgiving holiday. The contract expires on December 6. They added that rising prices for agricultural products traded in Chicago, corn, beans and wheat, are also being watched.
"That could ultimately affect acres for cotton next year. So, that's what got the December contract strengthened a little bit," Brown said. Brokers Flanagan Trading Corp sees resistance in the December contract at 50.00 and 50.60 cents, with support at 49.30 and 48.75 cents.
Floor sources said final volume was robust at around 20,000 lots, similar to the prior tally of 22,474 lots. Calls were seen at 2,762, with puts at 1715 lots on Monday. November 6 open interest in cotton rose by 1,099 lots to 186,243 lots.