Cotton futures ended slightly higher Monday on buying by small speculators in quiet dealings as most players sat back to wait for the release of a government crop report at the end of this week, brokers said.
The New York Board of Trade's key March cotton contract rose 0.50 cent to end at 52.27 cents a lb, dealing between 52 and 52.59 cents. May gained 0.41 to 53.31 cents. One contract aside, the rest added 0.27 to 0.35 cent.
"It's just drifting sideways," said Frank Weathersby of brokers Affinity Trading in Fort Walton Beach, Florida. He said there was little to talk about in the market given the very tight trading band for the day.
Futures edged higher at the start on speculative buying, but the level of interest was so sparse that most players were content to stay in the range throughout the session, dealers said.
"Cotton futures were well supported by trade buying and slackening volume indicates that funds are comfortable with their present position," said a daily commentary by brokers Flanagan Trading Corp.
Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana, said that even though the March cotton contract finally slipped below 52 cents, "the additional losses were a slow grind. Fresh news has been hard to come by and nothing in the wind seems to trigger talk, much less action."
Traders said the market will be looking toward the monthly supply/demand data due out from the US Department of Agriculture on Friday.
Most of the attention would be on any revisions to the level of demand, especially from top world consumer China.
Analysts expect the Chinese to be heavy buyers of cotton over the next 6-9 months although the timetable, as usual, is hard to forecast.
Flanagan Trading sees 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 amounted to 6,500 lots, down from Friday's tally of 7,621 lots. Open interest rose 931 lots to 95,268 contracts as of December 2.