By admin       2018-01-30

ICE cotton futures shed more than 2.5 percent on Monday to hit their lowest level in three weeks, weighed down by speculators liquidating long positions and prospects of increased acreage for the crop. *The most active ICE cotton contract for March expiry settled down 2.63 percent, or 2.12 cent, at 78.36 cents per lb, in its biggest one-day percentage loss since mid-September. *The contract traded within a range of 78.15 and 80.62 cents a lb, marking the lowest level since Jan. 9. *Long speculative liquidation was the primary factor weighing on the market, according to a New York-based trader. *"The disappointing export sales, the high price, the prospect of increased planting for this year's crop ... I think that took a little bit of the wind out of the cotton market," the trader said. *Speculators raised their bullish stance in cotton in the week to Jan. 23, adding 5,774 contracts to their net long position to bring it to 115,120 contracts, Commodity Futures Trading Commission (CFTC) data showed on Friday. *"Funds have likely cut their positions since Jan. 23, for when the CFTC reported the position, but they are still holding on to a large net long," said Gabriel Crivorot, an analyst at Societe Generale in New York. *"We expect cotton prices to drift lower during coming months from current level as these prices are high enough to result in substantial increase in acreage across the world," Societe Generale analysts wrote in a note. *ICE Futures U.S. on Monday reverted the daily trading limit for cotton futures to 3 cents per pound above and below the prior day's settlement price.... *The dollar was up 0.29 percent against a basket of currencies after six consecutive weeks of losses. USD *Total futures market volume rose by 19,086 to 65,811 lots. Data showed total open interest fell 3,352 to 317,392 contracts in the previous session.

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