New York cotton futures mixed

Cotton futures finished mixed Thursday as renewed speculative fund buying swiftly erased losses from an early downturn, powering the spot contract to a 3-1/2 month high, analysts said. The New York Board of Trade's open-outcry July cotton contract surged 0.75 cent to end at the day's peak of 56.50 cents per lb, with the session low at 55 cents.
It was the highest close for cotton on a spot basis since late February. The benchmark December cotton contract rose 0.08 cents to close at 61.50 cents, having traded from 60.65 to 61.70 cents. Three contracts aside the rest added 0.05 cent.
IntercontinentalExchange's NYBOT electronic cotton market showed the July contract up 0.71 cent to 56.46 cents at 2:33 pm EDT (1833 GMT). Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana, said trade sales knocked the market back in early dealings following a furious rally on Wednesday.
"The trade has kept a lid on it, but there are plenty of people waiting to buy it," he said, adding breaks in the coming days are going to be well supported by investors who missed the rally in fiber contracts. Most market players were still mulling if the rally is underpinned by buying from top consumer China. Analysts said the market will be looking at the start of deliveries in the July contract on Monday and then look toward release of the annual plantings report of the US Agriculture Department.
In industry news, the USDA said total US cotton sales amounted to 229,000 running bales (RBs, 500-lbs each), from 185,000 RBs in last week's data and trade belief it would range from 100,000 to 250,000 RBs. US cotton shipments of previously booked orders hit 452,600 RBs, from 451,600 RBs last week and trade expectations of 400,000 to 500,000 RBs.
Brokers Flanagan Trading Corp sees resistance in the December contract at 62 and 62.75 cents, with support at 59.80 and 58.75 cents. Floor dealers said final estimated open-outcry volume stood at 70,000 lots, from the prior volume of 34,798 lots. Screen trade Wednesday was at 26,085 lots, NYBOT said. Open interest was at 206,036 lots as of June 20, up 1,767 lots from the previous session.