NYCE cotton futures ended slightly lower Tuesday after a bullish outlook from a major industry player failed to continue the rally in prices, brokers said.
March fell 0.13 cent to settle at 75.67 cents a lb, after trading from 75.20 to 76.00. May eased 0.04 cent to 76.83 cents. Back month contracts finished steady to down 0.20 cent, with the exception of July, which ended up 0.03 cent to 77.53 cents.
At the annual Beltwide Cotton conference in San Antonio, William Dunavant Jr. said that NYCE cotton futures will keep a firm footing this year on the back of robust imports from countries like China.
Dunavant said China's cotton imports in 2003/04 will eventually reach 8 million to 9 million (480-lb) bales, which in turn will stimulate US cotton exports to rise to between 13.45 million and an all-time record of 14.2 million bales.
"China has already purchased 3.4 million bales from the US and probably 5.5 million bales in the world. China just recently announced its import quota for 2004 at 894,000 tonnes, or 4.1 million bales, and it will import all the quota for sure," Dunavant said.
USDA, in its monthly supply/demand report, pegged China's imports at 7.0 million bales and calculated US exports at a record 13.2 million bales.
China has imported large amounts of cotton after harsh weather ravaged its crop and forced it to turn to foreign suppliers to meet enormous demand from its apparel and textile industry.
Technicians pegged resistance in the March contract at 76.50 cents, while support was seen at 74.10 and 73.80 cents.
Floor dealers said estimated final volume reached 11,751 lots, from Monday's official count of 17,907 lots. Open interest in the cotton market rose 4,989 to 88,430 as of January 5.
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