Cotton futures posted its biggest daily gain since early December on Monday, as technical strength triggered short-covering. Speculators had increased their net short position in cotton by 9,673 lots to 36,537 lots in the week ended March 8, as they lifted their bearish bet in cotton to the biggest in nearly a decade, government data after market close on Friday showed.
"It's a technical rally and you have an overwhelming (number of) shorts in the market," said Lou Barbera of ICAP Cotton.
The front-month May contract on ICE Futures US settled up 1.14 cent, or 1.99 percent at 58.29 cents per lb, after hitting a high of 58.37 cents.
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