ICE cotton futures fell to their lowest levels in more than a month on Wednesday, as index funds prepared to roll long positions forward from the July to the December contract, resulting in limited buying interest despite delayed plantings. "We're running out of time in the July contract," said Louis Rose, independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee. "The market may have trouble going up."
Cotton contracts for July settled down by 0.26 cent on Wednesday, a 0.4 percent loss, at 63.05 cents per pound. It fell as low as 63.03 cents a pound, the lowest level since April 23. US Department of Agriculture data released Tuesday after market close showed that US farmers had plated 47 percent of their intended cotton acreage as of May 24, well behind the pace of the prior year and the prior five-year average.
July cotton's discount to December cotton rose to 0.98 cent per pound, up from 0.77 cent the prior session. Total futures market volume fell by 1,810 to 25,106 lots. Data showed total open interest fell 108 to 188,719 contracts in the previous session. Certificated cotton stocks deliverable as of May 26 totalled 117,943 480-lb bales, up from 116,375 in the previous session. The dollar index was up 0.11 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.69 percent. The Relative Strength Index in the most-active contract fell to 38.699.
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