June 1, 2018 / 8:23 PM / in 3 months

ICE cotton futures gain on spec buying, Texas weather concerns

    June 1 (Reuters) - ICE cotton futures rose on Friday, helped
by buying from speculators amid concerns of hotter weather
conditions in Texas, the major producing region of the natural
fiber in the United States.    
    * The most active ICE cotton contract for December expiry
      
       settled up 0.72 cent, or 0.79 percent, at 92.36 cents per
lb. It traded within a range of 91.21 and 93.00 cents a lb. 
    * The December contract        marked its best week since
July
2016, gaining 6.6 percent.
    * Prices are up due to spec buying even as the weather in
Texas is
still very hot and burning up, said Peter Egli, director of risk
management at British merchant Plexus Cotton.
    * "I think the market is also looking more and more toward
next
year's Chinese imports ... People expect more Chinese imports
next year and a structural change in the overall balance sheet,"
Egli added. 
    * The U.S. Department of Agriculture on Friday reported net
upland
sales of 16,700 running bales (RB) for 2017-18, a marketing-year
low, and 238,100 RB for 2018-19 for the week ended May 24.
Exports of 373,300 RB were down 7 percent from the previous week
and 16 percent from the prior 4-week average.             
    * The International Cotton Advisory Committee (ICAC) on
Friday
lowered its global cotton inventory forecasts for the 2018-19
crop year.             
    * Along with weather issues in the Xinjiang region which
represents 75 percent of China's cotton area and potential
drought conditions in West Texas affecting 25 percent of the
U.S. crop, there may be concern of quality supply gaps which may
affect next season's supply, the ICAC said in its monthly
report. 
    * The contract for July expiry               settled 0.16
percent
higher at 93.30 cents per lb. 
    * Speculators raised their net long position in cotton by
3,686
contracts to 111,587 contracts in the week to May 29, U.S. CFTC
data showed on Friday.        
    * Total futures market volume edged up 509 to 56,625 lots.
Data
showed total open interest gained 5,005 to 317,849 contracts in
the previous session.
    * Certificated cotton stocks CERT-COT-STX deliverable as
of May
31 totaled 76,385 480-lb bales, up from 74,361 in the previous
session.


 (Reporting by Sumita Layek in Bengaluru; Editing by David
Gregorio)
  
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