Cotton futures fell in light volume on Tuesday as traders hesitated to take on new positions before the US Federal Reserve's statement expected on Wednesday. "People are waiting to see what the Fed is going to do with the rates tomorrow," said Bobby Walton, president of Walcot Trading Company in Memphis, Tennessee, noting that a lack of high-quality cotton due to weather issues in the United States prevented further losses.
Tuesday's drop marked the fibre's fourth straight session of losses, the longest such streak since August. March cotton on ICE Futures US settled down 0.07 cent, or 0.11 percent, at 63.31 cents per lb. It traded within a range of 63.03 and 64.00 cents a lb. Total futures market volume fell by 3,985 to 13,987 lots. Data showed total open interest fell 1,776 to 194,129 contracts in the previous session.
Certificated cotton stocks deliverable as of December 14 totalled 65,248 480-lb bales, up from 65,247 in the previous session. The dollar index was up 0.63 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.02 percent. The Relative Strength Index in the most-active contract fell to 54.084.
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