Cotton futures fell for the third straight session on Tuesday and touched a one-week low on liquidation by speculators and index funds. "The market ran out of momentum and when it was unable to push higher the sellers started taking profits," said Peter Egli, director of risk management at British merchant Plexus Cotton.
"The mills are pulling down now as they see the market coming down. But the fixations still have to be done."
The market was also pressured by a stronger dollar, which climbed to a more than one-week high, bolstered by technical buying after recent losses as well as political uncertainty in Europe.
The March cotton contract on ICE Futures US settled down 0.54 cent, or 0.71 percent, at 75.09 cents per lb. It traded within a range of 75.05, the lowest since Feb. 1, and 76.09 cents a lb.
Total futures market volume rose by 32,645 to 75,575 lots. Data showed total open interest gained by 771 to 288,081 contracts in the previous session.
The dollar index was up 0.35 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.41 percent.
Comments
Comments are closed for this article.