By Julie Wernau
Cotton prices failed to sustain a brief rally Tuesday after winter weather slammed Texas, raising fears that unharvested crops there could sustain damage.
Cotton for March delivery dropped 0.2% to end at 63.87 cents a pound after rising as high as 64.25 cents a pound in earlier trade.
Texas, which grows the most cotton in the U.S., is largely finished with its harvest, with about 5% still left on the stalk, Mr. Rose said. The snow, he said, could delay some shipments of cotton to ginning mills.
Cotton has been trading in a tight range between 62 cents and 65 cents since late November.
In other markets, arabica coffee for March delivery rose 1.9% to end at $1.2145 a pound. Hector Galvan, senior market strategist at RJO Futures in Chicago called it a “technical bounce.”
“I would be hesitant to start calling a reversal,” he said. “I would wait to see how we look after the first full week in January.”
Demand from roasters for coffee has been light, analysts said, as many already purchased supplies in advance of the new year.
Cocoa for March rose 0.5% to $3,211 a ton, raw sugar futures for March closed up 0.1% at 14.78 cents a pound and frozen concentrated orange juice futures for March rose 0.7% to end at $1.5105 a pound.