April 30, 2019 / 8:14 PM / 3 months ago

Cotton holds near two-week low on favorable weather conditions

    April 30 (Reuters) - ICE cotton futures settled lower on
Tuesday, holding near the two-week low touched in the previous
session, as better weather conditions across West Texas expected
to boost plantations.
    * The most-active cotton contract on ICE Futures U.S. July
      
settled down 0.17 cent, or 0.22 percent, at 76.78 cents per lb.
    * The second-month contract        fell to 76.55 per cents,
the
level last seen on April 15.
    * Rains across West Texas expected to help cotton
plantations,
said Jon Marcus, president of the Lakefront Futures and Options
brokerage firm in Chicago.
    * "On the flip side it'll get too hot and that sort of
happened
last year which aided in the rally but this year, going into the
planting season, it's been pretty almost ideal weather." Marcus
said.
    * The outlook for cotton prices, however, remained bullish,
with
good demand for the natural fiber, according to analysts.
    * "ICE cotton has continued to move lower, seemingly on
little
major news, which suggests that month-end liquidation and
short-term technical factors could still be prompting the market
lower," said Louis Rose, director of research and analytics at
Tennessee-based Rose Commodity Group in a note.
    * On the technical side, the July contract        fell below
the
100-day moving average at around 76.64 cents. Speculators who
trade on technical signals regard a break below the 100-day
moving average as a bearish sign.
    * Meanwhile, White House acting chief of staff Mick Mulvaney
said
on Tuesday that the talks between the United States and China
aimed at resolving their trade dispute will likely be resolved
"one way or the other" in the next two weeks.            
    * Total futures market volume fell by 2,362 to 21,533 lots.
Data
showed total open interest gained 785 to 210,952 contracts in
the previous session.
    * Certificated cotton stocks CERT-COT-STX deliverable as
of
April 25 totaled 64,241 480-lb bales, up from 62,657 in the
previous session.


 (Reporting by Brijesh Patel and Asha Sistla in Bengaluru,
Editing by Alistair Bell)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below