US cotton futures neared 17-month highs on Thursday, rallying with other industrial commodities such as oil and copper, after encouraging economy data and fears that cotton stockpiles were shrinking. New York's key March cotton contract settled up 1.8 cents, or 2.4 percent, at 76.97 cents per lb. It rose as high as 78 cents during the session, a level not seen since September 30, 2008.
Day earlier, cotton fell slightly on Wednesday, breaking six straight sessions of gains, as the dollar's rebound led to lower prices for the fibre and most other US agricultural futures. "It's nothing more than a technically-required correction," said Keith Brown, cotton Keith Brown and Co in Moultrie, Georgia.
On Wednesday key March cotton contract settled down 0.17 cent, or 0.23 percent, at 75.17 cents per lb. It moved between 74.76 and 75.64. The contract had hit a six-week high of 75.74 cents on Tuesday, capping a run-up that began on February 8. Volume in the March contract hit 4,756 lots by 5:00 pm EST (2200 GMT), versus the 7,582 lots seen late on Tuesday in New York.
US cotton's most-active contract for May slid 0.15 cents, or 0.2 percent, to finish at 76.11 cents per lb, after trading from 74.68 to 76.46 cents. The dollar's rebound hit cotton and most agricultural markets, sending the broad Reuters-Jefferies CRB index down 0.3 percent. Brokers Flanagan Trading Corp saw resistance in the March contract at 75.60 and 76.70 cents, with support at 73.90 and 73 cents.
Latest available exchange data for New York traded cotton showed volume for February 16 at 31,509 lots, up from the previous 27,877 lots, according to data from ICE Futures US Open interest in the cotton market stood at 163,991 lots as of February 16, up from the prior count of 161,749 lots, the exchange said.
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