ICE cotton at 6-week low in commodities rout, technical selling

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NEW YORK, Nov 23 (Reuters) – ICE cotton futures fell to a six-week low on Monday as a strong dollar pressured commodities, and as an outside reversal on Friday, in which the price settled lower after exceeding Thursday’s high, sent bearish chart signals. “All commodities seem to be in the skids right now,” said Bobby Walton, president of Walcot Trading Company in Memphis, Tennessee, noting that the market’s failure to breach resistance at 63.50 cents a lb the prior session prompted some follow-through selling today.

  • March cotton on ICE Futures U.S. CTc2 CTH6 settled down 1.23 cent, or 1.96 percent, at 61.60 cents per lb, after falling as low as 61.45 cents a lb, the lowest since Oct.9.
  • Total futures market volume rose by 12,564 to 33,673 lots.

Data showed total open interest fell 1,695 to 173,271 contracts in the previous session.

  • Certificated cotton stocks CERT-COT-STX deliverable as of Nov.20 totaled 58,949 480-lb bales, down from 59,015 in the previous session.
  • The dollar index .DXY was up 0.26 percent. The Thomson Reuters CoreCommodity CRB Index .TRJCRB , which tracks 19 commodities, was down 0.16 percent.
  • Speculators raised their net long positions in cotton to 28,884 from 27,251 in the latest week.
  • The Relative Strength Index in the most-active contract CTc2 fell to 42.452.

(Reporting By Luc Cohen; Editing by Steve Orlofsky)

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