Cotton futures fall from three-week peak on chart signals

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Cotton futures eased on Wednesday after meeting resistance as prices climbed to the highest since early May, sparking investor selling. Prices “hit resistance (near) 63.50 (cents per lb) and then found new selling interest,” said Jack Scoville, a vice president at Price Futures Group in Chicago. “There is not enough demand around to keep this (market) exploding higher.” Cotton contracts for July settled down 0.11 cent, or 0.17 percent, at 62.9 cents per lb. It traded within a range of 62.37 and 63.42 cents a lb. The cash to second-month spread fell 0.10 cent to 0.16 cents per lb. Total futures market volume fell by 17,711 to 20,684 lots. Data showed total open interest gained 3,575 to 193,936 contracts in the previous session. * Certificated cotton stocks deliverable as of Tuesday totalled 92,257 480-lb bales, up from 91,559 in the previous session. The dollar index was down 0.21 percent. The Thomson Reuters Core Commodity CRB Index, which tracks 19 commodities, was up 1.07 percent. China cotton futures on the Zhengzhou Commodity Exchange were up 0.04 percent to 12,385 yuan per tonne.

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