Cotton futures settled easier Friday on investor sales triggered by a firm dollar as the market largely shrugged off a government crop report, brokers said. The December cotton contract lost 0.63 cent to close at 63.02 cents per lb, dealing from 62.81 to 63.96 cents. It was an inside day since the range was within Thursday's 62.75 to 64.08 cents band.
December contract volume reached 6,195 lots at 2:53 p.m. EDT (1853 GMT). March cotton fell 0.62 cent to settle at 65.63 cents, ranging between 65.45 and 66.52 cents. "We had neutral sort of numbers (from the US Agriculture Department)," said Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia.
The dollar's rise from a 14-month low sparked some light investor sales, but dealings were lethargic at best, he said. The USDA's monthly supply/demand report showed little change in the global cotton market. The most significant was a fall in 2009/10 world cotton output to 103.78 million (480-lb) bales, from last month's 105.06 million bales.
Otherwise, 2009/10 world cotton ending stocks were slightly down to 56.13 million bales from 56.26 million and 2009/10 world cotton consumption eased to 112.64 million bales from 112.74 million. The US 2009/10 cotton crop was lowered to 13.00 million bales from 13.44 million, largely as a result of losses in Texas, the leading cotton grower in the United States.
"There's not a surprise in here. Everything is within line of expectations," said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana. Brokers Flanagan Trading Corp sees support in the December contract at 62.20 and 61.25 cents, with resistance at 63.95 and 64.05 cents. Total cotton volume traded Thursday hit 11,141 lots, from the prior tally of 7,480 lots, ICE Futures US said. Open interest in the cotton market rose to 147,810 lots as of October 8 from the previous session's 146,567 lots, the exchange said.
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