New York cotton futures end both ways

Cotton futures finished mixed Monday in dreary business and the market may stay in a band until release of next week's potential plantings report by the government, brokers said.
The New York Board of Trade's May cotton contract shed 0.20 cent to close at 53.71 cents per lb, moving from 53.60 to 54.30 cents. July was flat at 54.64 cents. Two contracts aside, the rest gained 0.15 to 0.70 cent.
The IntercontinentalExchange's NYBOT electronic market for cotton showed the May contract down 0.11 cent to 53.80 cents at 2:29 pm EDT (1829 GMT), moving from 53.60 to 54.29 cents.
"Paint dry(ing) is faster than what we're doing here," said Sharon Johnson, cotton expert for First Capitol Group in Atlanta, Georgia. Modest buying by speculators would nudge futures up, but then trade sales would beat back futures, dealers said.
"We ran up but couldn't hold on," said Johnson. For the most part, most players were content to sit on the sidelines and trade cotton between 53.50 and 54.50 cents, basis the key May contract. Analysts said that range will likely stay until the US Agriculture Department hands out its annual potential plantings report on March 30.
Last week, Memphis-based analytical firm Informa Economics was said to have forecast US 2007 cotton plantings at 12.86 million acres, according to trade sources.
Informa officials were not available to comment on the estimates. The figure is sharply below last year's US cotton plantings of 15.276 million acres.
In a recent industry conference, major merchant Allenberg was said to have pegged US cotton sowings at 12.5 million acres and the Ag Market Network's conference call for producers forecast plantings at 12.231 million acres.
A strong rally in corn prices is expected to severely cut US 2007 cotton sowings.
"There's really no reason to push this thing until the plantings (report) goes out," a trader said. Broker Flanagan Trading Corp sees resistance in May cotton at 53.75 and 54.35 cents, with support at 53.30 and 52.80 cents.
Floor dealers said final estimated cotton volume in open outcry stood at 12,000 lots, from the prior tally of 11,519 contracts. NYBOT said electronic trading volume Friday was at 4,291 lots. Open interest in the cotton market fell 338 lots to 212,125 lots as of March 16.