Cotton futures closed marginally higher Thursday on buying by small speculators as the market drifted in a band amid a dearth of news to give it direction, analysts said. New York Board of Trade December cotton rose 0.08 cent to end at 52.37 cents a lb, dealing from 51.85 to 52.60 cents. March gained 0.03 to 54.40 cents. Except for two contracts, the rest added 0.08 cent.
"We're in a wait-and-see mode while waiting for the crop report," said Sharon Johnson, cotton expert for First Capitol Group in Roswell, Georgia.
She referred to the monthly US Department of Agriculture supply/demand report due out next week, which will contain the first solid estimates of the global cotton market.
Fundamentally, traders said the market was monitoring the growth of the US cotton crop and looking at the start of the 2005/06 marketing year (August/July).
Futures opened steady, as expected, and then proceeded to establish a trading range from which the market never strayed, dealers said.
USDA's weekly export sales report gave little inspiration as most ignored the data since it tabulated sales at the end of the 2004/05 marketing year.
USDA said US cotton sales came to 180,800 running bales (RBs, 500-lbs each), against trade belief it would range from 150,000 to 250,000 RBs.
US cotton shipments of previously booked orders amounted to 424,700 RBs, compared to trade belief it would reach between 400,000 and 500,000 RBs.
Brokers Flanagan Trading Corp sees resistance in the December contract at 52.35 and 53.10 cents, with support at 51.85 and 51.05 cents.
Floor dealers said estimated volume hit 4,000 lots, down from the previous tally of 5,108 lots. Open interest fell nine lots to 94,130 lots as of August 3.
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