Mumbai, 5 Oct (Commoditiescontrol): ICE cotton futures settled lower on Wednesday, their second consecutive session of losses, on demand concerns, while traders eyed a weekly federal export sales report.
ICE Cotton contracts for December ended at 87.01 cents, down 42 cents. March closed at 87.86 cents, 41 cents lower. May settled at 88.39 cents, losing 50 cents. Last week, the December contract ended up 124 points, but lost 67 points for the month.
It looks like China buying cotton from Brazil is translating negatively on U.S. cotton prices and cotton demand overall in the world is overstated, traders observed.
Market focus shifted to the U.S. Department of Agriculture's (USDA) weekly export sales report due on Thursday.
The natural fiber also took a hit as a more than $3-a-barrel fall in oil prices made cotton-substitute polyester less expensive. Limiting losses, however, the dollar index fell 0.3%, making cotton less expensive for other currency holders.
The Seam reported 1,826 bales were sold online for an average gross price of 81.49 cents on Oct 2. The Cotlook A Index dropped 150 points to 97.35 cents. The AWP for cotton is 72.27 cents/lb., effective through Thursday. ICE Certified Stocks increased another 2,400 bales to 37,512 as of Sep 28.
Speculators cut net long position by 4,239 contracts to 28,749 in week to Sept. 26, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.
For Thursday, support for the December Cotton contract is at 86.46 cents and 85.90 cents, with resistance at 87.75 cents and 88.48 cents.
(By Commoditiescontrol Bureau: 09820130172)
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