ICE cotton futures fell to their lowest level in 1-1/2 weeks on Wednesday as rains in the key West Texas growing raised the possibility of greater-than-expected production, prompting speculator selling. "There's potential for a gigantic dryland crop right now," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas. Cotton contracts for July settled down by 0.89 cent on Wednesday, a 1.3 percent loss, at 65.86 cents per pound, after falling as low as 65.57 cents a lb, its lowest level since April 24.
The cash to second-month spread fell 0.01 cent to 0.99 per pound. Total futures market volume rose by 1,707 to 18,865 lots. Data showed total open interest gained 2,765 to 197,716 contracts in the previous session. Certificated cotton stocks deliverable as of May 5 totalled 90,242 480-lb bales, up from 86,662 in the previous session. The dollar index was down 1.13 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.25 percent. The Relative Strength Index in the most-active contract fell to 54.813.
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