New York cotton settles mixed

Cotton futures finished mixed Friday in thin trade as market players sat back to wait for the release next week of a key government crop report, brokers said. The New York Board of Trade's key December cotton contract eased 0.12 cent to end at 53.63 cents a lb, ranging from 53.21 to 54.10 cents.
March was steady at 55.40 cents. One contract aside, the rest were flat to 0.10 cent easier. The US Department of Agriculture will release its monthly supply/demand report on Tuesday at 8:30 am EDT (1230 GMT).
"I think the upcoming report is an excuse for being range bound for the last eight days when prices reversed course and direction each day," said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana.
"There is plenty of trade buying at the lower levels and a monstrous crop to market at the higher levels," he added.
The focus of attention in the market will be the level of global fiber demand and what shape is the Chinese cotton crop in since this will affect purchases by the Asian giant, the world's biggest consumer of cotton.
"The main thing is we don't know exactly what crop China has," Carl Anderson, a senior economist based in Texas, said.
Last month, the USDA reduced its estimate for Chinese cotton production in 2005/06 to 25.5 million bales from the previous month's 26 million bales. Chinese cotton imports were seen up to 14.3 million from 14 million.
"Should China's crop fall by more than expected, they may have little choice to increase imports benefiting US (cotton) exporters," said Sharon Johnson, cotton expert for First Capitol Group in Roswell, Georgia.
Futures lost ground at the start to reach the lowest point for the day, but the same speculators nudged it to its session peak before interest sputtered going into the close of business, dealers said.
Brokers Flanagan Trading Corp sees resistance in December cotton at 54.10 and 54.50 cents, with support at 53.25 and 52.65 cents. Floor dealers said estimated final volume at 4,500 lots, from the previous tally of 12,499 lots. Open interest in the cotton market rose 985 lots to 111,506 lots as of October 6.