ICE cotton futures fell to their lowest in nearly a month on Wednesday as speculators liquidated long positions in follow through selling after the natural fibre market traded limit down on Tuesday, ahead of the release of reports from the US government this week. On Tuesday, the second month December cotton contract on ICE Futures US settled down 3 cents, or 3.94 percent, registering the biggest intraday percentage loss in nearly a year to trade limit down.
ICE said in a notice after the market closed on Wednesday that, starting Thursday, the limit would revert back to 3 cents per lb from 4 cents, previously. "The weather is a big concern. However some of the dry land cotton is at the point now that even the rain may not be able to help it in some areas, but nonetheless the market sees the rain and thinks it's negative," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia.
The market awaited the release of the US Department of Agriculture's weekly US export sales report on Thursday and the monthly US government supply and demand report on Friday. The December cotton contract on ICE Futures US settled down 1.61 cent, or 2.20 percent, at 71.44 cents per lb. It traded within a range of 71 and 72.9 cents a lb. Total futures market volume rose by 3,731 to 30,916 fell by 2,531 to 24,654 lots. Data showed total open interest fell 3,344 to 244,954 contracts in the previous session.
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