Cotton futures edged higher on Friday, after dipping to a two-week low earlier in the session, in thin-volume trading amid a softer dollar. The natural fiber market also marked its second successive weekly decline having slipped about 0.3 percent for the week. "I think we were simply down on follow-through selling from yesterday," said Louis Rose, an independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee.
The market may have witnessed some short-covering by trade-heavy shorts and by investors covering recent shorts, Rose added. The March cotton contract on ICE Futures US touched a session low of $70.05 per lb., a bottom since November 17. The volumes were thin and on such days the market can lack direction, according to Jordan Lea, chairman and co-owner of Eastern Trading in Greenville, South Carolina.
The March cotton contract on ICE Futures US settled up 0.14 cent, or 0.20 percent, at 71.04 cents per lb. It traded within a range of 70.05 and 71.85 cents a lb. Total futures market volume fell by 1,746 to 20,523 lots. Data showed total open interest fell 1,110 to 255,435 contracts in the previous session.
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