ICE cotton futures fell to their lowest in nearly two months on Monday as the December contract's close below major moving averages on Friday sent bearish technical signals and moves below recent lows triggered automatic sell-stops. "You hit sell stops once you got through the lows of the past few days and more sell-stops once you got through the June 2 lows," said Sharon Johnson, introducing broker for Wedbush Securities in Atlanta, noting that the December contract closed below its 50- and 200-day moving averages on Friday.
December cotton on ICE Futures US settled down by 1.03 cent on Monday, a 1.6 percent loss, at 63.63 cents per pound, after falling as low as 63.37 cents a lb, its lowest since April 22. The cash to second-month spread gained 0.49 cent to 1.37 cents per pound. Total futures market volume rose by 7,332 to 45,412 lots. Data showed total open interest fell 4,413 to 175,356 contracts in the previous session.
Certificated cotton stocks deliverable as of June totalled 168,566 480-lb bales, up from 163,916 in the previous session. The dollar index was down 0.15 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.44 percent. Speculators raised their net short position to 21,883 from 14,708 the week ended June 9, according to data released Friday after market close. The Relative Strength Index in the most active contract fell to 42.680.
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