NYBOT cotton futures settled easier Wednesday on trade and speculative sales as the market stalled after climbing steadily over the past few sessions, with most players uncertain about the next move in fibre contracts, brokers said.
Key December cotton declined 0.93 cent to conclude at 48.18 cents a lb, dealing from 48.12 to 49.45 cents. March tumbled 1.04 to 49.91 cents. The rest retreated 0.16 to 0.85 cent.
Mike Stevens of Swiss Financial Services in Mandeville, Louisiana said trade selling above 49 cents, basis the December contract, capped the market and then the small speculators piled into lead cotton south.
"It just backed off," he said, adding cotton futures are simply "not quite ready to go up yet."
Joe Carney of brokers iamhedged.com in Memphis, Tennessee, said speculators dumped cotton even though futures had surged the past few session after being "horribly oversold."
Looking toward the US Department of Agricultures weekly export sales report, cotton brokers said combined US upland cotton sales are seen reaching from 250,000 to 300,000 running bales (RBs, 500-lbs each), against total sales in last weeks report of 337,500 RBs.
Cotton shipments or previously booked orders are seen running from 300,000 to 350,000 RBs, against last weeks 206,500 RBs. The report is due out on Thursday at 8:30 am EDT (1230 GMT).
After that, the market will keep monitoring growing conditions in the United States, China and other countries.
Brokers Flanagan Trading Corp said resistance in the December cotton contract would be at 48.50 and 49.30 cents. Support was forecast at 47.50 and 46.65 cents.
Floor dealers said estimated final volume amounted to 8,000 contracts, from the prior tally of 8,321 lots. Open interest in the cotton market fell 116 contracts to 77,178 lots as of July 20.
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