Cotton futures shed more than 2 percent on Tuesday to register their biggest one-day loss in over six weeks amid profit-taking on a stronger dollar. The funds that moved into corn, soybeans as well as cotton are now realising that they will take some profits and get out as there is fundamentally no reason for the recent uptrend, said Jim Lambert, Director of Sales at FCStone Merchant Services, LLC.
The market also factored in China's cotton reserve auction that began on Tuesday, where about 30,000 tonnes were sold at 84 cents per lb, he added. China's state planning agency said last month that the annual sales of the country's cotton reserves would continue until August 31, with total sales not exceeding 2 million tonnes. The July cotton contract on ICE Futures US settled down 1.31 cents, or 2.04 percent, at 63.06 cents per lb. It traded within a range of 62.16 cents to 64.65 cents a lb.
Total futures market volume rose by 17,507 lots to 36,838 lots. Data showed total open interest gained 2,094 lots to 194,427 contracts in the previous session. The dollar index was up 0.36 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 1.47 percent.
Comments
Comments are closed.