NEW YORK: ICE cotton closed down on Wednesday in its longest string of one-day losses in more than two weeks, as long liquidation continued and rains in Texas eased concerns over supplies in the United States, the world's top exporter.
The benchmark December cotton contract on ICE Futures US settled down 0.72 cent, or 0.8 percent, at 86.60 cents per lb.
"We're in this summer weather market. There was some rain in Texas, which is certainly substantial," said a US trader.
The top growing state in the United States has been plagued by drought conditions, creating concern over reduced US output in the new crop year that begins Aug. 1.
Recent rains have eased worry and pushed December prices to a third straight daily loss, the third-month contract's longest string of down sessions since the end of May.
Dealers eyed a US Department of Agriculture (USDA) acreage report due next week for an updated acreage outlook after a unfavorable weather slowed the start of plantings.
Last week, the benchmark contract climbed to the highest prices since April on support from a bullish USDA forecast of lower-than-expected production and US stocks in the 2013/14 crop year on expectations of high crop abandonment in Texas.
Investors have been profit-taking after last week's run-up, dealers said.
Open interest totaled 175,996 contracts on Tuesday, down 2,130 lots from the previous session, according to the most recent ICE data.
The front-month July ICE contract closed up 0.42 cent, or 0.5 percent, at 85.40 cents a lb, settling higher for the first time this week after surging 8 percent last week in options-related dealings and on speculation of a large exchange delivery in July sparked concern over near-term US supplies.
A rise in certified stocks eased that concern and weighed on cotton prices, dealers said.
Exchange stocks climbed to 545,805 bales on Tuesday, the most recent ICE data showed, the highest level since June 2010.
The July contract is set to expire on July 9.
US weekly export data was due on Thursday, with dealers looking for signs of continued demand from China, the top textile market.
While the world is forecast to hold record stocks by the end of the 2013/14 crop year, more than 60 percent of those are expected to become part of China's reserves, and are considered unavailable to the global marketplace.
Beijing began a stockpiling program in 2011, paying above global prices to support farmers.
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