Thursday, 17 May 2012 02:57
NEW YORK: Cotton futures closed sharply lower on Wednesday, and set a 20-month low, to extend last week's 8.4 percent loss as investors sold out of most commodities along with equities in pursuit of cash, analysts said.
While anticipated bumper supplies of the fiber have kept a bearish tone in the futures market, analysts said they thought cotton had been oversold at current levels based on supply/demand fundamentals alone.
"There's no way to justify these price moves fundamentally," said Jobe Moss of MCM Inc in Lubbock, Texas, adding that technically, prices are likely to slip to a new low and then rebound.
July cotton on the ICE Futures US exchange ended 2.19 cents, or 2.77 percent, lower at 76.97 cents per lb, after slipping to 76.85, its lowest since September 2010. The high was 79.34 cents. Volume was healthy at 16,029 lots.
On Friday, the contract ended at 78.97 cents in the lowest close ...