NYBOT cotton futures settled higher Thursday on speculative and options-related buying although steady rounds of trade sales served to cap the markets advance, dealers said.
Key December cotton climbed 0.94 cent to end at 46.42 cents a lb, ranging from 45.41 to 46.45 cents. March gained 0.88 to 47.70 cents. The rest sprang up 0.05 to 0.82 cent.
"We continue to struggle fundamentally, but we continue to turn (higher) technically," said Keith Brown, president of commodity trading firm Keith Brown and Co in Moultrie, Georgia.
Alan Feild of brokers iamhedged.com based in Memphis, Tennessee, said trade pressure has made it "difficult for the market to move much higher" especially against the weight of a large US cotton crop in 2004.
Analysts said the ability of cottons key December contract to close above 46 cents meant it would have enough energy to probe the next target of 47 cents. But some analysts feel the contract must claw its way above 49 cents to be able to sustain the rally in the market.
Cotton prices have suffered lately due to expectations of a bumper US crop due to ideal growing weather across wide swathes of the cotton belt.
Dealers said the weekly export sales report of the US Department of Agriculture may have provided some support for futures.
USDA said combined US net upland sales stood at 300,600 running bales (RBs, 500-lbs each), against trade expectations it would range from 100,000 to 120,000 RBs. Shipments stood at 242,800 RBs. There are two days left in the marketing year and the final sales figures will be released by the USDA next week.
"The strong sales of new crop (cotton) were to countries other than China and it shows that if China fails to perform on their purchases, other countries are willing to take their place," said the daily report of brokers Flanagan Trading Corp.
Flanagan Trading pegged support in the December contract at 46 and 45.48 cents, with resistance at 46.65 and 47.30 cents.
Floor dealers said estimated final volume amounted to 6,000 contracts, off from Wednesdays tally of 7,556 lots. Open interest rose 416 lots to 79,041 lots as of August 4.