Cotton futures fell to the lowest in more than four months on Monday, weighed down by bearish sentiment in global markets and liquidation as traders awaited direction from the US government supply and demand report due on Tuesday. "We're probably seeing the carry over from ... the real negative price action we saw late last week, also new selling because we made new contract lows, all precipitated by a very negative environment emanating from Wall Street," said Jobe Moss, a broker with MCM Inc in Lubbock, Texas.
Traders looked ahead to the monthly US government supply and demand report, which would give fresh indications as to the size of the US crop currently being harvested, as well as the level of world demand. Equities and commodities markets were lower, pressuring fibre. US cotton farmers are expected to boost acreage by 6.2 percent this year as weak market prices for competing crops including corn and soybeans lead them to devote more area to fibre, the National Cotton Council said.
The March cotton contract on ICE Futures US settled down 0.37 cent, or 0.62 percent, at 59.60 cents per lb after hitting 58.75 cents per lb, a contract low and the weakest price since late September. Certificated cotton stocks deliverable as of Friday totalled 26,928 480-lb bales, up from 26,916 bales in the previous session. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.84 percent.
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