Cotton futures slip to over five-week low
Cotton futures fell for the third straight session to the lowest in more than five weeks on Tuesday as speculators continued to liquidate their positions even as wetter weather conditions prevailed in US producing regions. “(The weather) has gone from hot and dry to hot and wet, though that’s helping develop the crops and the market is down,” said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia.
The natural fibre market also factored in the US Department of Agriculture’s crop progress report, released on Monday after market close, which showed that 48 percent of cotton crops in the United States were in good-to-excellent condition, unchanged from last week. The December cotton contract on ICE Futures US settled down 0.26 cent, or 0.38 percent, at 68.6 cents per lb. It traded within a range of 66.88 and 69 cents a lb.
Total futures market volume rose by 10,056 lots to 39,321 lots. Data showed total open interest fell 3,439 contracts to 239,989 contracts in the previous session. The dollar index was down 0.85 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.81 percent.