NEW YORK: ICE cotton futures were little changed on Tuesday as stable demand was complemented by the likelihood of good production.
Cotton contracts for December were down 0.10 cent, or 0.1%, to 89.53 cents per lb at 11:20 a.m. EDT (1520 GMT). They traded within a range of 89.03 and 89.75 cents a lb. * Prices are balanced between good demand and what could be some record yields in some US states, with Texas doing quite well, said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.
“There’s a prospect of a very good planting in Australia, so the market is balanced at $0.90.” * A higher dollar also negated the weight of weaker Chicago grains.
Chicago wheat, corn and soybean futures eased on Tuesday as the market set recent production setbacks against forecasts for some rain relief in the US Midwest and uncertainty over the economic impact of a spreading coronavirus variant. * The dollar ticked up, increasing costs for buyers using other currencies and likely limiting the demand for cotton.
The US Department of Agriculture weekly crop progress report released on Monday showed 60% of the US crop was in good-to-excellent condition, compared with 61% a week ago, and 45% a year ago.
“West Texas has got some ideal rains and if that area gets one more good rain between mid-August to mid-September, we’re going to start looking at record yields,” Varner said.
Total futures market volume fell by 7,157 to 11,218 lots. Data showed total open interest gained 989 to 249,527 contracts in the previous session.
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