ICE cotton bounces up after three days of losses

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Cotton futures rose on Thursday, snapping three days of declines with support from slightly positive weekly US export sales data and a broad uptick across the commodities sector. Prices of the natural fiber have a little support around the 60-cent level, said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.

“The market’s been down over the past two weeks and there was some bottom fishing.” Sales of upland cotton were up 69 percent, while shipments dipped 38 percent from the previous week, weekly US government data showed. China’s cotton reserve auctions are off to a rapid start, outpacing last year’s sales in the first week alone, a sign of a shortage of high-grade supplies in the world’s top textile market, the US government said a report published on Thursday. The front-month July cotton contract on ICE Futures US settled up 0.13 cent, or 0.21 percent, at 60.73 cents per lb. It traded within a range of 60.55 and 61.37 cents a lb. The dollar index was up 0.37 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.17 percent. China cotton futures on the Zhengzhou Commodity Exchange were unchanged at 0 yuan per tonne. The spread between China futures and US cotton was 60.92 cents by 4:10PM EST.

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