New York cotton settles quietly lower-Texglobe

New York cotton settles quietly lower

Updated: 2010-6-29 Source: Texglobe-信息中心

NEW YORK (June 29 2010): Cotton futures settled lower Monday on very light investor sales as players tweaked positions before the release this week of a key government plantings report, brokers said. Benchmark December cotton eased 0.46 cent to end at 78.45 cents per lb, dealing from 77.67 to 79.30 cents.

Volume traded in the December contract stood at a modest 6,901 lots at 2:33 pm EDT (1833 GMT). "These are the dog days of summer," Sharon Johnson, cotton expert for First Capitol Group in Atlanta, Georgia, said in describing the lackluster action in fibre contracts.

She said many players were hanging back to wait for the release of the annual planted acreage report by the US Agriculture Department on Wednesday. Cotton analysts believe US 2010 sowings will reach around 10.85 million acres, the highest in three years, as strong prices and near ideal growing weather boosted the crop. Cotton futures also got some pressure from lower crude prices, but the volume of activity was very light. The market will digest later on Monday the weekly crop progress report from the USDA, due out at 4:00 pm (2000 GMT).

Brokers Flanagan Trading Corp put resistance in the December cotton contract at 78.80 and 79.65 cents, with support at 77.90 and 77 cents. Volume traded Friday came to 5,895 lots, versus the prior tally of 11,062 lots, ICE Futures US data showed. Open interest in the No 2 cotton market was at 164,397 lots as of June 25, compared to the prior 163,898 lots, the exchange said.