Cotton futures rose on Monday in reaction to a late Friday report that farmers would plant fewer acres of cotton this year than last, but trade was restrained by fund selling and spread activity. "I think the acreage report was constructive," said John Flanagan of Flanagan Trading Corp in Fuquay-Varina, North Carolina. The National Cotton Council released an annual survey after the market closed Friday indicating that farmers plan to sow cotton on 13.7 million acres in 2005, below 2004's 13.8 million and trade expectations of an average of 14.2 million acres.
The New York Board of Trade's March cotton contract rose 0.41 cent to settle at 43.75 cents a lb., trading from 43.35 to 44.10 cents. It held inside the previous session's range, when the contract touched 42.40, a one-month low.
May cotton went up 0.46 cent, to close at 45 cents a lb. and the rest rose 0.15 to 0.58 cent.
"We did have some spec selling and in the last hour we had some local selling push into the market," said Sharon Johnson at Frank Schneider and Co in Atlanta, who added there was buying of May cotton against selling March amid some spread bullishness.
"The spreads are widening out here and that makes it a little bit more difficult for March to rally when it's feeling pressure through the spreads," she said.
March-May closed at 1.25 cent, up from 1.19 on Friday.
Cotton has been burdened this year by record supplies, but this has been offset by robust consumption from places like China, which is the world's biggest producer and consumer of cotton.
Initial support in March cotton was seen at 42.40 cents, with resistance at 44.10, 44.25 and 44.60 cents. Open interest on Friday fell 4,886 contracts to 90,962.
Comments
Comments are closed.