US cotton futures settled slightly firmer Tuesday on late speculative buying although the market is seen staying pinned in a narrow band over the next few sessions, dealers said. New York Board of Trade March cotton gained 0.34 cent to finish at 46.78 cents a lb, ranging between 45.75 and 46.80 cents. May rose 0.45 to 47.87 cents, with distant months up 0.42 to 0.60 cent.
"Cotton can't make up its mind (on its next move)," said Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia.
He said while market fundamentals were bearish due to record cotton supplies in the US and around the world, the technical outlook for the market is bullish as speculative accounts are keen about adding to their long positions in cotton.
The market would also need to contend soon with the transfer of positions from March and into back months before the spot contract goes into delivery by the middle of February, Brown said. The March contract expires on March 8.
Futures trickled to session lows on sales by small speculators, but trade buying provided a floor and many speculators who had dumped futures proceeded to buy back going into the close, dealers said.
"Beyond the next few weeks and specifically after the Chinese New Year (on February 9) and the March delivery period, the May and/or July contracts should push beyond the March highs and trade through 50 cents," said a report by Sharon Johnson, cotton expert for Frank Schneider and Co Inc in Atlanta, Georgia.
Separately, the weekly New York Board of Trade spec/hedge report showed funds with a net long position of 23.3 percent, from a net long in last week's data of 16.7 percent.
Brokers Flanagan Trading said resistance in the March cotton contract lurks at 47.10 and 47.80 cents, with support at 46.60 and 46 cents.
Floor traders said final estimated volume amounted to 13,000 contracts, up from Monday's count of 7,669 lots. Open interest fell 526 contracts to 98,655 lots as of January 24.