ICE cotton futures rose on Tuesday, ahead of data from the US Department of Agriculture due later in the week and optimism over a trade deal between the United States and China. The most active cotton contract on ICE Futures US - the March contract - settled up 0.64 cent, or 0.88 percent, at 73.4 cents per lb.
The contact traded within a range of 72.65 and 73.74 cents a lb. Anticipation of a trade deal between the United States and China, and prospects for the USDA report later this week are helping prices, said Jack Scoville, vice president at Price Futures Group in Chicago.
"Some of the people who wanted to buy are using the break we had yesterday and are buying it today." The USDA, which has been hit by the partial shutdown of the US government, is expected to release its monthly crop supply/demand report on Feb. 8. "We are anticipating some reduction in production and see export demand starting to develop," said Scoville.
A US trade delegation will visit China in mid-February for a new round of talks to resolve the trade tussle. Total futures market volume fell by 17,727 to 30,981 lots. Data showed total open interest gained 1,550 to 239,624 contracts in the previous session. Certificated cotton stocks deliverable as of Feb. 4 totalled 127,025 480-lb bales, up from 122,205 in the previous session.
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