Cotton gains on weaker dollar, but loses momentum late in session


ICE cotton rose on Tuesday, boosted by a weaker dollar and gains across the commodities complex, but came off substantially from the day’s highs in a late-session sell-off as speculators with long positions sensed the rally was losing momentum. “We’re running out of steam,” said Peter Egli, director of risk management at British merchant Plexus Cotton Ltd, noting that in each of the previous two days, the market had settled well below the session high.

July cotton contracts on ICE Futures US settled up by 0.16 cent on Tuesday, a 0.2 percent gain, at 66.39 cents per pound. It traded within a range of 65.60 to 67.07 cents a pound. The cash to second-month spread gained 0.49 cent to 0.31 cent per pound.

Total futures market volume fell by 9,826 to 19,372 lots. Data showed total open interest gained 5,906 to 180,472 contracts in the previous session. * Certificated cotton stocks deliverable as of April 27 totaled 74,993 480-lb bales, up from 73,660 in the prior session. The dollar index was down 0.70 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.32 percent. The Relative Strength Index in the most-active contract fell to 61.339 * The most-active soybean futures gained 4-1/4 cents to 977-1/4 cents per bushel while the front-month corn futures were up 1/4 cent to 361 cents.

– Reuters