Cotton futures edged lower on Friday on profit-taking, snapping a four-day rally one day after the market had touched its highest point in more than three months amid a stronger dollar. The March cotton contract on ICE Futures US, however, registered its biggest weekly gain in five weeks and was up 4.8 pct for the week.
Speculators were wary of adding to their positions on a Friday and ahead of a short holiday week in the United States and the first notice day of December contract next week, said Louis Rose, an independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee. Cotton futures on Thursday touched a session high of 72.75 cents per pound, the highest since August 12.
"It is a little setback on a Friday which is perfectly normal," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia. "Exporters are buying cotton now since it might cost them more later on. I think we are in a window where a stronger dollar is encouraging higher prices." The March cotton contract on ICE Futures US settled down 0.22 cent, or 0.30 percent, at 72.32 cents per pound. It traded within a range of 71.59 and 72.6 cents a pound. The contract rose 4.8 percent for the week, the best since the week ended October 14. Total futures market volume fell by 21,431 to 33,050 lots. Data showed total open interest gained 4,179 to 250,111 contracts in the previous session. The dollar index was up 0.38 percent.
Comments
Comments are closed.