Cotton futures settled fractionally firmer Wednesday on buying by small investors as players were content to tweak positions while awaiting the release of a government crop report this week, brokers said. The cotton market was closed Monday for a holiday. The December cotton contract in New York rose 0.01 cent to end at 60.77 cents per lb, ranging from 60.36 to 61.20 cents.
It was an inside day since the range was within Tuesday's 59.64 to 61.25 cent band. Volume traded in the December contract reached 5,474 lots at 2:37 pm EDT (1837 GMT). March cotton was up 0.15 cent to finish at 63.25 cents. "It's an inside day. We're up here and we're stuck," said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana.
He and other brokers said the market was now sitting at roughly the halfway point of a range between 57 and its recent peak over 65 cents. Business was very modest as most players appear to be taking a breather while waiting for further leads to provide direction for fibre contracts. The weakness of the dollar enabled cotton to stay in positive territory, but action was listless at best, dealers said.
The market is now waiting for Friday's release of the monthly supply/demand report from the US Agriculture Department. Analysts said worries over the fragile prospect of a global economic recovery and its impact on demand will keep the trade on edge going into the report, which is handed out at 8:30 am EDT (1230 GMT).
Brokers Flanagan Trading Corp put resistance in December delivery at 61.35 and 62.20 cents, with support at 60.55 and 59.60 cents. Total volume traded Tuesday reached 12,032 lots as of September 8, from the previous tally of 5,458 lots, exchange data showed. Open interest was at 126,311 lots as of September 8, up from the previous count of 124,790 contracts, ICE Futures US said.