Cotton futures settled marginally higher Tuesday on light buying by small speculators in quiet trade, with fiber waiting for leads to give it direction for the next move, brokers said.
New York Board of Trade's key March cotton contract rose 0.16 cent to end at 52.31 cents a lb, moving from 52.15 to 52.65 cents. It was an inside day as the range held within Monday's 52.10 to 53.50 band. May added 0.10 to 53.50 cents. The rest gained 0.13 to 0.35 cent.
"It's been real dormant (today)," said Keith Brown, president of commodity trading firm Keith Brown and Co in Moultrie, Georgia.
Dealers said the benchmark March cotton contract remains trapped in a wide band running from 52.05 to 53.45 cents, an area representing last week's high.
They said solid trade support has so far prevented the March contract from dropping below 52.05 cents while overhead trade sales has kept the lid on above 53.45 cents.
A fall below 52.05 cents could drag March down another 1.00 cent and a finish above 53.45 should encourage the contract to rise by 1.00 cent as well, he said.
A report by First Capitol Group cotton expert Sharon Johnson said she does not expect March to lose further ground although "a rally is necessary if merchants are to obtain needed supplies to meet their obligations, domestic and foreign."
The attention of the market is slowly turning to the strong pace of demand and whether it would be sufficient to the large crops being produced by countries like the United States.
Futures popped higher at the start of business, but the speculators were content to stay within the range right into the close of trade, dealers said.
"It was just so quiet and I don't see anything to get us out of this rut tomorrow," one said.
Brokers Flanagan Trading Corp put resistance in the March contract at 52.45 and 53.20 cents, with support at 52 and 51.20 cents. Floor dealers said estimated final volume came to 6,000 lots, down from Monday's tally of 7,576 lots. Open interest rose 1,269 lots to 90,235 contracts as of November 28.