ICE cotton futures halted
a two-session decline on Tuesday, helped by short-covering ahead of a monthly
crop supply and demand report from the U.S. government. The U.S. Department of
Agriculture''s World Agricultural Supply and Demand Estimates (WASDE) report is
due on Wednesday.
Some people covered shorts while some added length to their positions. People
with different interests wanted to get squared before the WASDE report, said Louis Rose, co-founder
and director of research and analytics at Rose Commodity Group. About 21
percent of plantings have been completed in 15 major cotton-producing states
across the United States in the
week to May 7, up from 14 percent the previous week, the U.S. Agriculture
Department said in a weekly report released after market close on Monday.
The July cotton contract on ICE Futures
U.S. settled up 0.24 cent, or 0.31 percent, at 77.43 cents per lb. It traded
within a range of 77.07 and 77.82 cents a lb. * Total futures market volume
rose by 3,544 to 25,130 lots. Data showed total open interest fell 1,948 to
259,387 contracts in the previous session. India looks likely to receive higher
monsoon rainfall than previously forecast as concern over the El Nino weather condition has eased, the chief of the weather
office said on Tuesday, raising prospects of higher farm and economic growth.
Source: DNA India, India Wednesday, 10 May 2017