NEW YORK: Cotton futures were slightly lower on Thursday as institutional selling offset buying triggered by "encouraging" export sales data that bolstered hopes of continued steady mill demand.
The most-active March cotton contract on ICE Futures U.S. closed down 0.2 cent, or 0.25 percent, at 78.85 cents a lb. Volumes were low with only 7,096 March lots traded on the day.
Prices gave up earlier gains after encouraging U.S. export sales which revealed almost 250,000 rolling bales of cotton were sold for export in the week to Nov. 28.
While that was down from just under 266,000 bales in the previous week, the data was "respectable," INTL FCStone analysts said in a note.
China's state reserve sales were suspended on Thursday due to a technical issues but are expected to resume on Friday, they said.
"There seems little to stimulate the market into a meaningful readjustment of price," INTL FCStone said.
Fibers followed the broader commodities market lower, with investors skittish ahead of Friday's U.S. jobs report which has stoked worry the Federal Reserve may reduce its huge fiscal stimulus program because of signs of economic strength.
Traders were also bracing for next week's monthly crop report from the U.S. Department of Agriculture.
The Thomson Reuters/Core Commodity CRB index, a benchmark for global commodities markets, fell 0.14 percent.
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