June 4, 2018 / 7:53 PM / 6 months ago

ICE cotton futures fall 1.5 percent after rains in West Texas

    June 4 (Reuters) - ICE cotton futures fell 1.5 percent on
Monday, as weather concerns in West Texas abated following rains
in the major producing region of the natural fiber in United
States.        
    * The most active ICE cotton contract for December expiry
      
       settled down 1.42 cent, or 1.54 percent, at 90.94 cents
per lb. It traded within a range of 90.76 and 93.55 cents a lb.
    * The December contract        fell for the first time in
eight
sessions and also marked its biggest one-day percentage loss in
six weeks. 
    * "The Southeast (region) is drying out and we have renewed
planting," said Keith Brown, principal at cotton brokers Keith
Brown and Co in Moultrie, Georgia.   
    * "Last night, West Texas got some rain. There was a pretty
broad
front that came out of Arizona, New Mexico and came across
Texas. Several of the farms got rain... I think the drought (in
Texas) is probably dialed in." 
    * The December contract has jumped nearly 14 percent since
mid-May, touching an all-time high of 93.73 cents a lb last
week, supported by concerns of drought like conditions in West
Texas.    
    * "Right now the market is negative on some very light rains
in
West Texas and the overall trade disagreements between the U.S.
and China," said Jack Scoville, vice president with Price
Futures Group in Chicago.   
    * Meanwhile, China is set to boost its imports of cotton by
issuing additional import quotas to mills, said the China Cotton
Association on Monday, a move seen by the market as another step
towards meeting the demands of top exporter the United States.
            
    * "The quota would be fine, maybe, although China has
imported
more than that in the past. Still, it is a commitment. However,
the overall tenor of the talks throws anything into question.
The U.S. ramped up demands and tariff threats and the world is
taking a dim view of these things, China included. So, a long
way to go yet," Scoville said.  
    * Total futures market volume fell by 8,440 to 49,096 lots.
Data
showed total open interest gained 4,304 to 322,153 contracts in
the previous session
    * Certificated cotton stocks CERT-COT-STX deliverable as
of June
1 totaled 76,983 480-lb bales, up from 76,385 in the previous
session.


 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by Sandra
Maler)
  
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