US cotton futures closed slightly lower on Wednesday, dropping along with other commodities which weakened on a stronger dollar. Comments by US House Speaker John Boehner voicing optimism that Republicans could broker a pact with the White House to avoid an impending budget crisis helped lift prices off early lows, alongside broader financial markets.
The most-active March contract on ICE Futures US fell 0.11 cent, or 0.15 percent, to settle at 72.63 cents per lb, rebounding from a session low of 71.65 cents. "We're still in the recent range. I'd call the market fair value, with support at 70 cents. There's not much to push it lower," said a risk manager with a merchant. Investors have withdrawn from the market, with little volatility to woo speculators and plentiful physical supplies to feed global textile mills. As has been typical of recent months, there was very little forward business taking place outside of March, the most-active contract.
Open interest fell 106 lots to 161,178, holding at its lowest level since January and down about 22 percent from the end of October. There were just 747 lots of May futures and 351 contracts traded on Wednesday. That compares with a lower-than-average 10,122 lots in March. Certificated stocks rose over 5,300 bales to 55,303 bales as of November 27, and bales awaiting review increased by 8,000 bales to 30,937 bales, with 15 bales decertified.