June 11, 2018 / 8:21 PM / in 11 days

ICE cotton futures fall 1 pct ahead of USDA report

    June 11 (Reuters) - ICE cotton futures fell 1 percent on
Monday, as the market awaited a monthly crop supply and demand
report from the U.S. Department of Agriculture (USDA). 
    * The most active cotton contract on ICE Futures U.S., the
third-month December contract              , settled down 0.92
cent, or 0.99 percent, at 91.68 cents per lb. It traded within a
range of 91.52 and 93.5 cents a lb.
    * The USDA's World Agricultural Supply and Demand Estimates
(WASDE) report is due on Tuesday.
    * "This is a day before the WASDE report. This kind of
volatility
is not uncommon. People are trying to get covered, adjusted and
balanced before the report," said Louis Rose, director of
research and analytics at Tennessee-based Rose Commodity. 
    * "The U.S. production is probably a little lower than most
people
think. It won't be burned to the ground but it will be a little
lower (in the WASDE report) ... I think the USDA will pare back
world production."
    * Market participants are keeping a close watch on rain in
Texas,
the major cotton-growing region in the United States.
    * "They had some rain in Texas in the last 10 days but they
need a
lot of rain, especially to the south and west of Lubbock. That
area is not the highest producing area in terms of per acre
yield but they have a lot of acres so its a big production
area," Rose said.
    * Speculators slightly raised a bullish stance in cotton to
111,621 contracts on ICE Futures U.S., the highest since late
January, in the week to June 5, U.S. Commodity Futures Trading
Commission data showed on Friday.              
    * Elsewhere, India's 2018/19 cotton production is forecast
at 28.7
million, as per a report issued by a U.S. Department of
Agriculture attache in India.             
    * Total futures market volume fell by 17,089 to 55,282 lots.
Data
showed total open interest fell 4,733 to 317,362 contracts in
the previous session.
    * Certificated cotton stocks CERT-COT-STX deliverable as
of June
8 totaled 78,384 480-lb bales, up from 78,377 in the previous
session.


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