Cotton futures finished virtually unchanged on Wednesday in subdued dealings, with the market seen drifting in a band due to a dearth of news to provide direction for futures, dealers said. The New York Board of Trade's March cotton contract settled flat at 46.78 cents a lb, dealing from 46.60 to 47.35 cents. May added 0.06 to 47.93 cents. The rest gained 0.10 to 0.20 cent.
Sharon Johnson, cotton expert for Frank Schneider and Co Inc in Atlanta, said speculators and trade accounts were on both side of the cotton ring in "pretty quiet" business.
Cotton fundamentals are seen by players as bearish due to record cotton supplies in the US and around the world, but the technical outlook for the market is bullish as speculative accounts appear eager about expanding long positions in the market, dealers said.
Johnson said cotton, based on the spot March contract, looks pinned between 45 and 48 cents for the meantime.
Analysts said cotton futures may also be drifting ahead of two reports due out Thursday and Friday.
The first is tomorrow's weekly US Department of Agriculture export sales report. Cotton brokers feel that US cotton sales could range from 200,000 to 300,000 running bales (RBs, 500-lbs each), versus sales in the last report of 348,900 RBs.
The next data would be the annual survey by main industry group National Cotton Council of potential US cotton plantings in the 2005 season.
A survey by Reuters showed that US industry participants feel US cotton sowings should rise to an average of 14.2378 million acres, up from 13.76 million in 2004.
Brokers Flanagan Trading said resistance in the March cotton contract was at 47.10 and 47.80 cents, with support at 46.60 and 46 cents.
Floor traders said final estimated volume was at 10,000 contracts, down from Tuesday's 11,630 lots. Open interest in the market fell 386 to 98,269 lots as of January 25.