Cotton futures settled mixed Friday in another quiet session as most players awaited next week's potential plantings report by the government, brokers said. New York Board of Trade's May cotton contract closed up 0.05 cent at 53.27 cents per lb after trading 53.17 to 53.60 cents.
The range almost matched Thursday's 53.15 to 53.60 band. July eased 0.01 to 54.26 cents. The rest ranged from 0.10 cent lower to 0.25 cent higher. IntercontinentalExchange's NYBOT electronic platform for cotton showed the May contract up 0.05 cent at 53.27 cents at 2:30 pm EDT (1830 GMT), moving from 53.17 to 53.60 cents.
"We're getting consolidation before the report," said Frank Weathersby, an analyst for brokers Affinity Trading in Fort Walton Beach, Florida. He was referring to the annual potential plantings report from the US Agriculture Department due for release on March 30.
Most analysts expect USDA to show cotton plantings falling sharply due to a rally in corn futures that could prompt cotton farmers to sow more of the grain. Last year, US farmers planted 15.276 million acres to cotton.
Last week, Memphis-based analytical firm Informa Economics was said to have forecast US 2007 cotton plantings at 12.86 million acres, according to trade sources. Informa officials were not available to comment on the estimate.
Major merchant Allenberg was said to have forecast US cotton plantings at 12.5 million acres and the Ag Market Network's conference call for producers predicted US cotton sowings at 12.231 million acres.
Weathersby said there's a lot more interest in the plantings data than in years past because the guesses on actual US cotton sowings are in a wide band. Brokers Flanagan Trading Corp sees resistance in May cotton at 53.30 and 53.75 cents, with support at 52.80 and 52.10 cents. Floor dealers said estimated final volume stood at 15,000 lots, from the prior open-outcry volume of 11,384 contracts. NYBOT said electronic trading volume Thursday was at 3,369 lots. Open interest jumped 3,622 lots to 219,143 lots as of March 22.