ICE cotton futures on Monday fell the most in a single session in two weeks, on strength in the US dollar and a continued rise in certificated stocks, as index funds continued to roll long positions from the July contract to December. "The renewed strength in the dollar is important," said Chris Kramedjian, a risk management consultant at INTL FCStone in Nashville, Tennessee.
July cotton on ICE Futures US settled down by 0.60 cent on Monday at 63.75 cents per pound, the largest single-session decline since May 18. It traded within a range of 63.69 and 65.15 cents a pound. The December contract's premium to July rose to 0.32 cent per pound, up from 0.29 cent on Friday. Total futures market volume fell by 28,507 to 31,269 lots. Data showed total open interest gained 879 to 189,670 contracts in the previous session.
Certificated cotton stocks deliverable as of May 29 totalled 132,772 480-lb bales, up from 124,606 in the previous session. The dollar index was up 0.51 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.14 percent. Specs cut their net long position to 21,409 from 35,641 in the latest week. The Relative Strength Index in the most-active contract fell to 43.868.