NEW YORK, Nov 17 (Reuters) – ICE cotton futures edged up on Tuesday on worries that unfavorable weather during the harvest has hurt quality of U.S.supplies now being ginned and on technical support after the previous day’s break-out above resistance.
Tight supplies of high-grade cotton were supporting prices, said Keith Brown, a Moultrie, Georgia-based cotton broker. “Rain from Texas to Virginia and all points in between has the balance of cotton being a poorer grade,” Brown said.
The benchmark contract CTc2 on Monday jumped above key resistance at the 20- and 50-day moving averages and touched a two-week high of 63.55 cents, lending support.
Certificated cotton stocks CERT-COT-STX deliverable as of Monday totaled 53,208 480-lb bales, up from 51,750 in the previous session.
(Reporting by Chris Prentice; Editing by David Gregorio)