Cotton futures ended lower Monday on combined speculative and options-related sales in quiet business, with most players waiting for news to give the market direction in the days ahead, analysts said. The New York Board of Trade's December cotton contract shed 0.65 cent to conclude at 50.80 cents a lb, dealing from 50.15 to 51.35 cents. March fell 0.60 to 52.97 cents.
Back months lost from 0.40 to 0.55 cent. "(It's like) watching paint dry," said Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia, in describing the pace of market activity.
Fundamentally, the market is waiting for the weekly US Department of Agriculture crop condition report due out later on Monday to gauge the condition of the US cotton crop.
The trade is also waiting to see how demand shapes up in the coming weeks, especially with the start of the 2005/06 marketing season (August/July) looming ahead.
Speculative and options-related sales pressured cotton from the opening bell, but trade accounts provided support for the market when it got near 50 cents, basis the December cotton contract, the dealers said.
"I'd have to say the market is leaning south and we will probably grind lower from here," one broker said.
Concern over the direction of Hurricane Emily has eased somewhat after the storm weakened after crossing the Yucatan Peninsula in Mexico.
"Rains from this storm could impact South Texas cotton but are now not expected to reach West Texas cotton areas," said a report by brokers Flanagan Trading Corp.
Flanagan Trading sees support in the December contract at 50.40 and 49.90 cents, with resistance at 51.05 and 51.85 cents.
Floor dealers said estimated volume hit 9,000 lots, compared with the previous tally of 5,913 lots. Open interest in the market rose 54 lots to 90,734 lots as of July 15.