US cot­ton slips as USDA re­port in sight

The Financial Daily - - MARKET SUMMARY -

NEW YORK: US cot­ton fu­tures ended lower Tues­day on in­vestor sales as the mar­ket dropped for the third straight session, with most play­ers wait­ing for re­lease of a key gov­ern­ment plant­ings re­port this week, an­a­lysts said.

The key May cot­ton con­tract on ICE Fu­tures US fell 2.61 cents to end at $1.9488 per lb, deal­ing from $1.941 to $2.01.

'We're just mark­ing time till the num­bers go out,' said Keith Brown, pres­i­dent of com­mod­ity firm Keith Brown and Co in Moultrie, Ge­or­gia.

To­tal vol­ume traded in the cot­ton mar­ket was around 14,200 lots, al­most 50 per cent be­low the 30-day norm, Thom­son Reuters pre­lim­i­nary data showed.

The level of in­vestor in­ter­est re­mained near a six-week high as open in­ter­est stood at 180,249 lots as of March 28, ICE Fu­tures US data showed.

A Thom­son Reuters sur­vey showed US cot­ton sow­ings are ex­pected to reach a five-year high of around 13.21 mil­lion to 13.24 mil­lion acres, up al­most 20 per cent from the 11.04 mil­lion acres planted in 2010.

The re­cent rally in cot­ton prices to record highs may not be enough to push US cot­ton sow­ings be­yond a five-year high set in 2006.

The USDA re­port is the first gov­ern­ment sur­vey of likely plant­ings for ma­jor row crops in 2011. -Reuters

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