By admin       2019-03-29

MAR 29TH, 2019 - ICE cotton futures fell more than 1 percent to a one-week low on Thursday, hit by a stronger dollar and as prices fell below a critical technical support. The front-month cotton contract on ICE Futures US, settled down 1.08 cents, or 1.40 percent, at 75.87 cents per lb. The front-month contract hit its lowest level since March 21 at 75.52 cents per lb in the session. "Strength in the dollar is a factor (pushing prices down)," said Sid Love, commodity trading adviser at Kansas-based Sid Love Consulting. "When we moved below the 100-day moving average we got some liquidations," Love added. The dollar index was up 0.4 percent. A stronger greenback makes commodities priced in dollars more expensive for holders of other currencies. The May contract fell below the 100-day moving average at around 76.22 cents. Speculators who trade on technical signals regard a break below the 100-day moving average as a bearish sign. Meanwhile, the US Department of Agriculture (USDA) reported net upland sales of 219,000 running bales for the fibre in the 2018-19 marketing year for week ended March 21, up 75 percent from the previous week and 79 percent from the prior four-week average. Investors were looking for developments in ongoing trade talks between the United States and China. Economic adviser Larry Kudlow said the United States could lift some tariffs on China, while leaving others in place as part of an enforcement mechanism on a US-China trade deal. The USDA will release its prospective crop plantings report on Friday. Total futures market volume fell by 2,254 to 29,915 lots. Data showed total open interest fell 169 to 226,425 contracts in the previous session. Certificated cotton stocks deliverable as of March 27 totalled 46,544 480-lb bales, unchanged from 46,544 in the previous session.

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