ICE cotton futures inched up on Tuesday, as funds continued to roll long positions forward and investors covered shorts amid expectations the US government will raise its forecast for US cotton exports in its monthly World Agriculture Supply and Demand Estimates Report.
"They probably should have done that in the last report. We've been running way ahead," said Keith Brown, a Moultrie, Georgia-based cotton trader. Total US export sales for the 2014/15 crop year, which ends in July, have already exceeded the US Department of Agriculture's forecast of 10.7 million bales. The most-active December contract on ICE Futures US settled up by 0.03 cent on Tuesday at 65.37 cents per pound. It traded within a range of 65.15 and 65.95 cents a pound.
The December contract's premium to the July contract rose to 0.82 cent per lb from 0.54 the prior session Certificated cotton stocks deliverable as of June 8 totalled 153,931 480-lb bales, up from 147,814 in the previous session. The Relative Strength Index in the most-active contract rose to 52.909.