Cotton futures edge higher, hovering near two-week peak

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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.

  • The March cotton contracts on ICE Futures U.S. CToi1 settled up 0.06 cent, or 0.10 percent, at 62.67 cents per lb. It traded within a range of 62.55 and 63.37 cents a lb.
  • The cash to second-month spread CT-1=R fell 0.41 cent to 1.21 cents per lb.
  • Certificated cotton stocks CERT-COT-STX deliverable as of Monday totaled 53,208 480-lb bales, up from 51,750 in the previous session.
  • The dollar index .DXY was up 0.17 percent. The Thomson Reuters CoreCommodity CRB Index .TRJCRB , which tracks 19 commodities, was down 0.92 percent.

(Reporting by Chris Prentice; Editing by David Gregorio)

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