NEW YORK: ICE cotton futures fell to a three-week low on Monday on worries surrounding the US election and global demand for the natural fibre amid rising coronavirus cases, although some short- covering and risk-on sentiment limited losses.
The cotton contract for December fell 0.08 cent, or 0.1%, to 68.84 cents per lb by 11:53 a.m. EST (1653 GMT).
"We have been on both sides of unchanged. The higher stock market is helping out a little bit while we have got an election which we are worried about and we don't know how the coronavirus is going to affect the demand," said Jack Scoville, vice president at Chicago-based Price Futures Group.
On the US election front, there are worries that the results may not be clear on Tuesday night as ballot counting could take time amid the likelihood of post-election court battles.
Coronavirus cases continued their climb in the United States on Sunday and cases in Europe have doubled in five weeks, while Prime Minister Boris Johnson ordered England back into a national lockdown.
Equity markets recovered from one-month lows as strengthening factory data in China and Europe offset news of new virus lockdowns, while investors prepared for more volatility arising from the US presidential election.
Prices had touched their lowest since Oct. 12 at 68.06 cents per lb earlier in the day, before recouping most of the losses.
"It was just a little bit of short-covering. The general trend may be a little negative but you are going to get bounces like that," Scoville added.
Total futures market volume fell by 24,098 to 19,940 lots.
Certificated cotton stocks deliverable as of Oct. 30 totalled 49,300 480-lb bales, up from 45,898 in the previous session.-Reuters
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