NYBOT cotton futures closed softer Friday on late speculative sales in thin business as many players were sidelined waiting for a key government report next week, dealers said.
Key December cotton fell 0.82 cent to finish at 45.60 cents a lb, dealing between 45.50 and 46.78 cents. March sank 0.95 to 46.75 cents. Distant months slid 0.25 to 0.83 cent.
"Nobody wants to take a position before the report," said Frank Weathersby of brokers Affinity Trading in Fort Walton Beach, Florida.
Traders said some of the speculators, which had driven cotton past a technical barrier at 46 cents, basis December, trimmed their long positions in cotton ahead of the weekend. "Were going into a really critical report so people are wary about being aggressive on their positions," one said.
The US Department of Agriculture will release its monthly supply/demand report on August 12, the first such report in the 2004/05 marketing year (August/July) and it will contain detailed projections for crops like cotton based on actual conditions in areas like the US cotton belt.
"If weather is accommodating over the remainder of this month and next, the odds are for a re-test or possibly a new low in October due to confirmation of larger crops," said Sharon Johnson, cotton expert for Frank Schneider and Co.
Futures have been hammered lately because of anticipated large crops in the United States and in countries like China, the world's largest producer and consumer of cotton. Brokers Flanagan Trading Corp pegged support in the December contract at 45.48 and 44.20 cents, with resistance at 46 and 46.65 cents.
Floor dealers said estimated final volume amounted to 5,500 contracts, off from Thursday's tally of 6,353 lots. Open interest fell 1,360 lots to 77,681 lots as of August 5.