Cotton futures finished higher Thursday on speculative fund buying and most players shrugged off bomb explosions in London which killed 50 and wounded scores of others, analysts said. The New York Board of Trade's December cotton contract rose 0.92 cent to end at 55.88 cents a lb, moving from 54.82 to 56.35 cents. Spot July fell 0.20 to 50.90 cents. The rest rose 0.75 to 0.86 cent.
Sharon Johnson, cotton expert for First Capitol Group in Atlanta, Georgia, said the market climbed after the selling pressure of Wednesday dissipated.
She said the attacks in London had no discernible impact in cotton since players were focusing on the release of a government sales report tomorrow and the approach of Hurricane Dennis to the southern United States next week.
"Fears of an economic slowdown as a result of the attack are being offset by fears of US (cotton) production losses as a result of Hurricane Dennis," said a report by brokers Flanagan Trading Corp.
Flanagan added that Dennis will not likely inflict severe damage on crops in the Delta or Southeast except "where direct flooding" hits some areas.
Separately, dealers said they were looking toward release of the US Department of Agriculture's weekly export sales report on Thursday.
Brokers expect US cotton sales to range from 150,000 to 250,000 running bales (RBs, 500-lbs each), compared with sales last week of 355,600 RBs.
US cotton shipments of previously booked orders are seen ranging from 250,000 to 400,000 RBs, against 301,900 RBs in last week's data.
Flanagan Trading sees support in the December contract at 55.60 and 54.95 cents, with resistance at 56.10 and 56.95 cents.
Floor dealers said estimated volume amounted to 7,000 lots, down from Wednesday's count of 12,304 lots. Open interest rose 672 lots to 92,601 lots as of July 6.
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