NEW YORK, Oct 28 (Reuters) – ICE cotton futures rose in light volume on Wednesday, as rains in cotton-growing regions continued, while many market participants were reluctant to take positions ahead of an industry event and an export sales report expected Thursday. Wednesday marked an “inside day” for cotton, in which the price never exceeded the prior session’s high nor fell below the prior session’s low, as prices for the fiber remained in the relatively tight range of the past few months.
“The market feels pretty comfortable in those levels,” said Anestis Aramptazis, a risk management consultant with INTL FCStone in Nashville, Tennessee, noting that many market participants would avoid making “big actions” before the International Cotton Association meeting this weekend. Rains in portions of the U.S.cotton belt continued, with the potential to disrupt harvest activities or harm crop quality, though Aramptazis noted the light volumes showed traders’ concerns were limited.
Just 9,437 lots traded hands in the December contract, the second-lowest level this month.
- December cotton on ICE Futures U.S. CTc1 settled up by 0.33 cent on Wednesday, a 0.5 percent gain, at 62.67 cents per pound. It traded within a range of 62.20 and 62.90 cents a pound.
- Certificated cotton stocks CERT-COT-STX deliverable as of Oct. 27 totaled 46,674 480-lb bales, up from 45,586 in the previous session.
- The dollar index .DXY was up 0.91 percent. The Thomson Reuters CoreCommodity CRB Index .TRJCRB , which tracks 19 commodities, was up 1.95 percent.
- Relative Strength Index in the most-active contract CTc1 rose to 50.035.
(Reporting by Luc Cohen)