By admin       2018-03-08

ICE cotton futures rose on Wednesday on expectations of a bullish monthly supply-demand report by the U.S. Department of Agriculture on Thursday. ICE cotton contract for May expiration settled up 0.43 cent, or 0.52 percent, at 82.86 cents per lb. It traded within a range of 81.78 and 83.77 cents a lb. Cotton futures marked their highest since March 2014 on Tuesday. "The price increased today because the market is optimistic ahead of the USDA (reports), but there is long liquidation if the price goes too far," said Gabriel Crivorot, an analyst at Societe Generale in New York. "Right now, the market is very bullish. The analyst forecasts of the USDA report are bullish, with predictions of higher demand and lower supply both in the U.S. and globally." The USDA's World Agricultural Supply and Demand Estimates (WASDE) report is due on Thursday along with the weekly export sales report. "Demand has gone up for cotton but it has also gone up because there's lesser amount of the higher quality cotton, which is what the textile mills desire," said David Ruppenicker, chief executive of Southern Cotton Growers Inc. Total futures market volume fell by 26,783 to 40,677 lots. Data showed total open interest fell 1,126 to 270,288 contracts in the previous session. The United States will export more cotton in the current crop year than the USDA has forecast, a Reuters poll showed, raising the likelihood the agency will have to revise its projections on Thursday amid expectations for strong demand as well as lower output from top producer India. Certificated cotton stocks deliverable as of March 6 totaled 93,613 480-lb bales, down from 102,423 in the previous session.

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