NYBOT cotton futures settled mostly higher Monday on buying by small speculators in quiet dealings as the US cotton belt escaped the fury of Hurricane Charley, with bearish fundamentals keeping a lid on advances in fibre contracts, dealers said.
Key December cotton inched up 0.02 cent to close at 44.32 cents a lb after trading between 43.88 and 45.05 cents. March added 0.13 to 45.70 cents. The rest ranged from 0.05 cent firmer to 0.15 cent softer.
"Its stuck," said Frank Weathersby of brokers Affinity Trading in Fort Walton Beach, Florida.
He said Hurricane Charley, which battered citrus farms in central Florida last Friday, caused "minimal" damage to cotton farms in the US cotton belt. Once the storm cleared Florida, it brought rain to North and South Carolina and into Virginia.
The market has been battered by figures released in the US Department of Agricultures monthly supply/demand report which forecast US cotton production in 2004/05 hitting 20.18 million (480-lb) bales, near the all-time record of 20.3 million in 2001/02 and well above trade expectations it would hit an average of 18.878 million bales.
World cotton output in 2004/05 was seen at 106.59 million bales, nearly six million bales above world consumption of 100.66 million, the USDA said.
"If cotton prices do not fall five to seven cents from the pre-report level of 45.50 (cents), basis December, it will be because world demand is strong enough to absorb the huge world crop that is now projected to be harvested," said Flanagan.
Flanagan Trading said support in the December contract would be at 44 and then 43 cents. Resistance is said to lurk at 44.60 and 45 cents.
Floor dealers said estimated final volume amounted to 5,000 contracts versus Fridays tally of 3,686 lots. Open interest fell 117 lots to 79,548 lots as of August 13.