Cotton futures settled mixed Thursday in switch trade as most players marked time ahead of a series of crop reports tomorrow and next week, brokers said. The key March cotton contract rose 0.04 cent to close at 49.71 cents per lb, trading between 49.45 and 50.08 cents. It was an inside day since the range was within Wednesday's 49.02 to 50.10 cents band.
Volume traded in the March contract was at 7,685 lots at 2:45 pm EST (1945 GMT). The May contract eased 0.24 cent to end at 50.34 cents. Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana, said the market was content to "hold onto yesterday's gains" and that most of the running in cotton was in switches and spread trade.
For the past few sessions, players have been seeking to push the spot March contract below 49 cents, but the failure every time encouraged covering on the way back. The market derived little inspiration from the US Agriculture Department's weekly export sales report. USDA said total US cotton sales hit 98,200 running bales (RBs, 500-lbs each), from 117,100 RBs in last week's data and trade belief it would range from 50,000 to 150,000 RBs.
US cotton export shipments hit 205,800 RBs, against 138,400 RBs last week and trade expectations it would run from 130,000 to 150,000 RBs. Analysts said the market is already looking toward next Tuesday's USDA monthly supply/demand report.
More importantly, the main industry group National Cotton Council will release its annual cotton potential plantings survey after the market closes on Friday. Brokers Flanagan Trading Corp put it resistance in the March cotton contract at 50.50 and 51.60 cents, with support at 49.60 and 48.95 cents. Volume traded Wednesday reached 16,874 lots, exchange data showed. Open interest was at 129,209 lots as of February 4 versus 128,412 lots in the previous session.