NEW YORK: ICE cotton futures edged lower on Wednesday, as rising coronavirus cases in the United States quashed risk sentiment and stoked demand concerns for the natural fiber.
Cotton contracts for December fell 0.12 cent, or 0.2%, at 59.32 cents per lb by 01:03 p.m. ET (1703 GMT).
"The broader market is down today and that's making cotton look weaker, but the overall volume is very quiet and that's stopping prices from falling further," said Bailey Thomen, cotton risk management associate with INTL FCStone.
Wall Street's major indexes fell as investors weighed the risk to the US economy from rising coronavirus cases and a worsening forecast of the damage from the pandemic.
Anthony Fauci, the top official for infectious disease in the United States, told a House committee that the surge in several states was worrying and so the next two weeks could be crucial in containing them.
So far this year, cotton prices have plummeted by more than 16%, as demand has been weakened by the pandemic.
The United States Department of Agriculture's (USDA) weekly export sales report is due on Thursday.
"Most investors are keeping an eye on the exports tomorrow and they are hoping a strong figure just like last week," Thomen said.
Total futures market volume fell by 10,549 to 9,543 lots. Data showed total open interest fell 3,138 to 159,309 contracts in the previous session.
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