Cotton slides to one-week low

ICE cotton futures hit its lowest in more than a week on Thursday, falling about 1.5 percent ahead of a federal crop acreage report amid concerns surrounding an ongoing feud between the United States and China. The most active cotton contract on ICE Futures US, the third-month December contract, settled down 1.32 cent, or 1.56 percent, at 83.55 cents per lb. It traded within a range of 83.48, a low since June 20, and 84.96 cents a lb.
"The potential higher acres in tomorrow's report is breaking the market today," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia.
The US Department of Agriculture's annual acreage report is scheduled for release on Friday, at noon EDT (1600 GMT). A Reuters poll last week showed US cotton acreage was seen at 13.781 million acres for the 2018/19 crop.
"There (also) continues to be a hangover from the potential trade tariff... That has been the force that has kept the market pretty much down and side ways these last few days," Brown added.
China's commerce ministry said on Thursday it would carefully monitor US policies on inbound investments, stressing that the country opposes using national security as grounds to restrict foreign investments.
US is the world's biggest cotton exporter, while China is the top consumer.
Meanwhile, the US Department of Agriculture (USDA) on Thursday reported exports of 367,800 running bales (RB) for the week of June 21 were up 18 percent from the previous week, but down 15 percent from the prior 4-week average.
The USDA also reported net upland sales reductions of 18,900 running bales for 2017-18 and net sales of 196,200 running bales for 2018-19, which were partially offset by reductions for China (50,400 RB).
Total futures market volume rose by 6,982 to 16,812 lots. Data showed total open interest fell 830 to 256,407 contracts in the previous session.
Certificated cotton stocks deliverable as of June 27 totalled 91,960 480-lb bales, down from 92,009 in the previous session.