ICE cotton falls amid index fund roll as harvest progresses


NEW YORK, Nov 4 (Reuters) – ICE cotton futures fell for the third straight session on Wednesday, hitting their lowest levels in more than three weeks, as harvest activities progressed in U.S.growing regions and index funds shifted long positions forward from the front month.
“We’ve got a lot of cotton starting to come into the pipeline, and there’s going to be more on the way,” said Jobe Moss, a broker with MCM Inc in Lubbock, Texas. The December contract CTZ5 shifted to its first discount to the March contract CTH6 since mid-August, marking a return to a market condition known as contango as nearby supply increased due to the harvest and funds sold December positions.
The spread between the two contracts widened to as much as 0.08 cent for the steepest contango since June.

  • December cotton on ICE Futures U.S. CTc1 CTZ5 settled down by 0.63 cent on Wednesday, a 1 percent loss, at 61.94 cents per pound, after trading as low as 61.80, the lowest level since Oct.13.
  • Total futures market volume rose by 11,265 to 43,686 lots.

Data showed total open interest fell 379 to 199,327 contracts on Tuesday.

  • Certificated cotton stocks CERT-COT-STX deliverable as of Nov.3 totaled 42,352 480-lb bales, down from 43,216 on Monday.
  • The dollar index .DXY was up 0.77 percent. The Thomson Reuters CoreCommodity CRB Index .TRJCRB , which tracks 19 commodities, was down 1.73 percent.

(Reporting by Luc Cohen; Editing by Lisa Von Ahn)