Cotton futures down on speculator selling
Cotton futures snapped two straight sessions of gains and fell on Friday on speculator liquidation ahead of the weekend amid a stronger dollar. “I think we are still seeing some speculator liquidation and a failure of a lot of speculators buying ahead of the weekend,” said Louis Rose, an independent cotton trader and consultant with Risk Analytics in Memphis.
The second month December cotton contract on ICE Futures US declined about 3.7 percent for the week. “There were just not enough bargain hunters to push prices higher.” Speculators retreated from their largest net long position in cotton contracts on ICE Futures US in 8-1/2 years in the week ended August 16, US government data showed on Friday.
The December cotton contract on ICE Futures US settled down 0.98 cent, or 1.42 percent, at 68.03 cents per lb. It traded within a range of 67.67 and 69.56 cents a lb. The dollar index was up 0.32 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.30 percent. At 10:25 am CDT (1525 GMT), Chicago Board of Trade November soybean futures SX6 were down 11-3/4 cents at $10.02-3/4 a bushel. China, the world’s top textile exporter, imported 94,800 tonnes of cotton in July, down 10.2 percent year-on-year, the China Cotton Association said late on Thursday.