By admin       2017-10-10

ICE cotton futures closed a touch higher in low volume trade on Monday as investors remained on the sidelines ahead of a monthly crop supply and demand report from the U.S. government due later this week. Cotton contracts for December settled up 0.11 cent, or 0.2 percent, at 68.95 cents per lb. It traded within a range of 68.05 and 69.07 cents a lb. "The market is trying to get positioned ahead of Thursday's report when we will get a better picture of the losses from Hurricanes Irma and Harvey and also how big a crop we are looking at," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas. The September U.S. Department of Agriculture's (USDA) World Agricultural Supply and Demand Estimates (WASDE) report projected 21.76 million bales of U.S. cotton output for the 2017-2018 crop year, higher than the 20.55 million bales of production estimated in August. "At this time, it looks as if world production will likely change very little versus the September report, with the U.S. crop likely to get a bit smaller versus the gargantuan September projection of 21.76 million bales," said Louis Rose, co-founder and director of research and analytics at Rose Commodity. The market also awaited USDA's weekly crop progress report to be released on Tuesday, delayed by a day due to a federal holiday. "Mother Nature has and continues to send clear signals that she will only offer a troubled and delayed harvest. Such a combination speaks to both a quality and quantity damaged crop with more uncertainty in front of us," O.A. Cleveland, consulting economist at Cotton Experts said in a note. Total futures market volume fell by 2,730 to 14,812 lots. Data showed total open interest gained 396 to 229,974 contracts in the previous session. Certificated cotton stocks deliverable as of Oct 6 totaled 5,445 480-lb bales, up from 5,444 in the previous session. The dollar index was down 0.15 percent.

Download App

# #

Member Login