NYBOT cotton futures dribbled to an easier close Wednesday on switch-related sales as the trade looked for leads to give it direction in the coming sessions, brokers said. December cotton declined 0.57 cent to settle at 44.58 cents a lb, trading between 44.26 and 45.60 cents. March lost 0.90 cent to 44.06 cents. Losses in back months slid 0.40 cent to 1.20 cents.
The fundamental outlook for cotton remains dogged by a record crop in the United States and similarly large crops in places like China, the world's biggest producer and consumer of the fibre.
Sharon Johnson, cotton expert for Frank Schneider and Co Inc in Atlanta, Georgia, said the main feature of business was a "lot of...rolling" as investors transferred positions from the spot month and into back months.
Traders said the market should be turning its attention to rollovers with first notice day in the December cotton contract on November 22.
Johnson said cotton has only a shrinking window to nudge values higher especially when the US harvest goes full bore later in the month.
Every day that passes by meant "there is a little bit more cotton in the pipeline," she said.
Looking toward the weekly US Department of Agriculture's export sales report, brokers said they expect US net upland cotton sales to range from 100,000 to 150,000 running bales (RBs, 500-lbs each), versus sales last week of 72,500 RBs.
The brokers said they expect US cotton shipments of previously booked orders to touch from 90,000 to 125,000 RBs, against shipments of 105,400 RBs in the last USDA report.
Further out, the trade will be looking at the USDA's monthly supply/demand report on November 12.
Brokers Flanagan Trading Corp forecast support for the December cotton contract at 44.25 and 43.65 cents, while resistance was at 44.90 and 45.50 cents.
Floor dealers pegged estimated final volume at 15,500 lots, from Tuesday's 10,486 lots. Open interest in the cotton market fell 122 lots to 84,823 lots as of November 2.
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