Cotton futures down on speculator liquidation, fading weather concerns
Cotton futures sank to a more than one-month low on Monday on speculative selling amid fading concerns over weather in key producing regions in the United States. On Friday, ICE December cotton registered its biggest weekly decline since early May 2014 on a bearish world supply and demand report from the US government. Continued liquidation by speculators is pushing prices down, said Ron Lee, general manager at McCleskey Cotton in Bronwood, Georgia.
“I think the weather scare is out of this market right now.” Traders awaited crop progress data due after the market close on Monday. The December cotton contract on ICE Futures US settled down 1.79 cents, or 2.53 percent, at 68.86 cents per lb. It traded within a range of 68.77 and 71.51 cents a lb. Total futures market volume rose by 745 to 29,198 lots. Data showed total open interest fell 1,035 to 243,428 contracts in the previous session.