NEW YORK: Cotton futures edged down on Monday in light volumes as an absence of investor buying and concerns over waning demand kept prices under pressure.
The most-active July cotton contract on ICE Futures U.S. closed down 0.13 cent, or 0.1 percent, to settle at 92.34 cents a lb as prices hugged support along their 10- and 14-day moving averages.
Volumes were below average following the long weekend. Cotton trading on ICE opened at the regular time after being shut for the Good Friday holiday, while Liffe softs markets in London remained closed.
The front-month May ICE contract slipped 0.48 cent, or 0.5 percent, to finish at 89.69 cents per lb as it neared its May 7 expiry.
Exchange stocks inched up to 284,400 bales on Friday from 283,700 previously, ICE data showed on Monday. That was the highest in ten months, according to data compiled by Reuters.
Prices hit two-year highs in late March, with the front-month peaking at 97.35 cents a lb and the second-month climbing as high as 96.76 cents.
"U.S. cotton is becoming less competitive worldwide," said Louis Rose, an independent cotton trader and consultant at Risk Analytics in Tennessee.
Rose said he expected demand will return in volume if prices fall to key psychological and technical range of 89 to 90 cents.
Speculators cut their bullish bet in fiber in the most recent reporting week, U.S. government data showed on Friday.
Total open interest fell to 174,220 lots on Thursday, down by about 2,000 lots from the previous day, to the lowest levels in over a month, ICE data showed on Monday.
Even so, export sales of 84,700 running bales rose sharply from the prior week, U.S. government data showed on Thursday. The prior week's report showed a reduction for the first time since June 2012.
Australia's 2014/15 output and exports are expected to fall 5 percent from the prior year on adverse seasonal conditions, the U.S. Agriculture Department attache said.
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