ICE cotton futures hit a two-week low on Wednesday despite a rebound in global equities, suggesting supply concerns prompted by a bullish US government crop report two weeks ago are evaporating. "We're really coming to terms with [the fact that] the Texas crop is not as small as they think," said Keith Brown, a Moultrie, Georgia-based cotton trader, referring to the United States' top-producing state. "The fact that we're not responding to the stock market suggests cotton's looking at something else."
Cotton prices tumbled on Monday along with stock markets, so its continued weakness as equities recover suggests fiber's own fundamentals are driving the price, Brown said. December cotton on ICE Futures US settled down 0.65 cent on Wednesday, a 1 percent loss, at 62.51 cents per pound, after falling as low as 62.26 cents a pound, its lowest level since August 12.
Total futures market volume fell 4,285 to 22,297 lots. Data showed total open interest fell 4,060 to 183,346 contracts in the previous session. Certificated cotton stocks deliverable as of August 25 totaled 78,585 480-lb bales, down from 80,881 in the previous session. The dollar index was up 0.51 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 1.21 percent. Relative Strength Index in the most-active contract fell to 37.887.
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