NYBOT cotton ended easier Thursday on sales by small speculators as the market continued to trade in a band, with fibre contracts seen drifting in a range in the days ahead, analysts said.
December cotton fell 1.10 cents to conclude at 47.37 cents a lb, dealing between 47.30 and 48.70 cents. March lost 0.99 to 49.49 cents. Aside from one contract, the rest came off 0.50 to 0.85 cent.
"No one wants to push it either way," said Joe Carney of brokers iamhedged.com based in Memphis, Tennessee.
He said cotton will like "continue to chop around" in an ever tightening range until something fundamental changes in the market, a prospect he thinks is unlikely for now.
Traders said the cotton market will likely stay in a range from 46 to 49 cents, basis December, while the US cotton harvest hits full bore.
Futures got buoyed lately as heavy showers drenched Texas, the top cotton growing area of the country.
After an initial spurt of follow-through speculative buying hoisted the market to its high for the day, the same speculators dumped cotton before the market recovered somewhat going into the close of business, analysts said.
Separately, the US Department of Agriculture's weekly export sales report showed US net upland cotton sales at 131,900 running bales (RBs, 500-lbs each), versus trade belief it would reach from 140,000 to 200,000 RBs. Sales last week stood at 219,500 RBs.US cotton shipments of previously booked orders hit 100,800 RBs, against trade expectations of 50,000 to 120,000 RBs. Last week, shipments reached 61,300 RBs.
Next Tuesday, USDA's monthly supply/demand report containing an update on estimates for cotton production and consumption in the 2004/05 marketing year (August/July) will draw market attention.
Brokers Flanagan Trading Corp put support in December delivery at 47.10 and 46.35 cents with resistance at 47.75 and 48.30 cents.
Floor dealers pegged estimated final volume at 6,000 lots, up from Wednesday's count of 5,884 lots. Open interest rose 346 lots to 72,205 lots as of October 6.
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