ICE cotton futures fell for the third straight day on Wednesday, hitting a four-week low as trend-following funds continued to exit July long positions, though concerns about slow planting progress so far helped boost the December contract.
"The trend-following funds continued to liquidate in July today," said Sharon Johnson, introducing broker with Wedbush Securities in Atlanta, noting that trade was more modest than in the prior two sessions in part because mills found current levels attractive for price fixations.
Cotton contracts for July settled down by 0.2 cent on Wednesday, a 0.3 percent loss, to 64.15 cents per pound, after falling as low as 63.71 cents a lb, the lowest level for the front-month since April 23. The front-month's discount to December cotton widened to 0.82 cent from 0.48 the prior session. Total futures market volume fell 2,592 to 27,909 lots. Data showed total open interest fell 3,920 to 187,619 contracts in the previous session.
Certificated cotton stocks deliverable as of May 20 totalled 126,880 480-lb bales, up from 123,874 in the previous session. The dollar index was up 0.17 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.09 percent. The Relative Strength Index in the most-active contract fell to 43.541.
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