ICE cotton fell for the second straight session to the lowest in over a week on Monday, pressured by forecasts of favorable weather conditions for the natural fibre crop. "It looks like we will get some desperately needed rain," said Louis Barbera of ICAP Cotton. However, prices should be firm until there is more cotton in the US pipeline, which should be in the next two weeks, he added.
The December cotton contract on ICE Futures US settled down 0.39 cent, or 0.54 percent, at 72.29 cents per lb. It traded within a range of 71.54 and 72.63 cents a lb. The dollar index was down 0.19 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.87 percent. Heavy rain in Mali's cotton-growing regions could help the country to reach its production target of 650,000 tonnes despite a dry start to the season, the state-owned Malian Company for Textile Development (CMDT) said. Speculators inflated their bullish position in ICE Futures US cotton contracts to the biggest in nearly 8-1/2 years in the week ended July 19, US government data showed on Friday, after the market soared to a two-year high on supply concerns.
Comments
Comments are closed.