ICE cotton futures rebounded from a two-week low on Wednesday on expectations for increased buying from China ahead of a weekly US government export sales report.
Cotton contracts for July rose 0.88 cent, or 1.64 %, to 54.46 cents per lb as of 12:48 PM EDT (1648 GMT). They traded within a range of 53.2 and 55.05 cents a lb. "We are seeing a bit of a rebound ahead of the export sales report, which is expected to show additional sales to China," said Peter Egli, director of risk management at British merchant Plexus Cotton.
Last week's export sales report by the United States Department of Agriculture showed China purchased for 2019/20, its largest weekly amount for a current marketing year since June 2012. The next report is due on Thursday.
Global coronavirus-led restrictions and lockdowns have sapped demand, with cotton prices declining 23% so far this year. Total futures market volume fell by 8,404 to 14,137 lots. Data showed total open interest gained 172 to 176,253 contracts in the previous session. Certificated cotton stocks deliverable as of May 5 totaled 3,579 480-lb bales, unchanged from the previous session.
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