NYCE cotton futures ended easier Monday on grower, trade and speculative sales which aborted an attempt to pierce a technical barrier in the market, analysts said.
March eased 0.30 cent to finish at 75.64 cents a lb, moving from 75-76.18 cents. May lost 0.22 to 76.80 cents. Except for one contract, distant months retreated 0.05 to 0.25 cent.
"The trade selling did not run out," said Mike Stevens of Swiss Financial Services in Mandeville, Louisiana.
Early speculative buying hoisted cotton to its highs, with the key March contract racing past the 76 cent obstacle to touch off some modest automatic buy orders, brokers said.
But trade and grower selling did not relent and capped the market, forcing the small speculators to sell cotton in the process, they said.
"When we slowed down, the locals turned around and took us to the short side," said Stevens.
Analysts said cotton futures will likely retain its strength since most players anticipate a renewed round of buying by China, whose heavy purchases last year enabled prices to spike to their highest level since late 1995.
Chinese players have been sidelined in the market because of the Lunar New Year festivities and they will only come back on Wednesday.
"Merchants there have been expecting a surge in demand at the start of their New Year, and that could translate into a quickened pace of US (cotton) export sales to China," said the daily report of brokers Flanagan Trading Corp.
Total Chinese purchases of US cotton as of the latest export report stood at 3.262 million RBs, against 658,600 RBs at this time last year, according to the USDA.
Flanagan sees resistance in the March contract at 75.90 and 76 cents, with support at 75 and 74.10 cents.
Floor dealers said estimated final volume reached 9,500 lots, compared with the prior tally of 11,818 lots. Open interest rose 1,695 lots to 99,202 lots as of January 23.
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