November 8, 2001	Thursday	Shaba’an 21, 1422

NEW YORK, Nov 7: NY cotton futures ended marginally higher Tuesday on brisk all-around buying, although dealings were confined to a tight trading band in the market.

It’s just drifting in a narrow range, Frank Weathersby of Affinity Trading in Destin, Florida, said.

Cotton futures have been consolidating the past few sessions after slithering to near 30-year lows last week due to abysmal demand, abundant supplies and a recession spawned by the Sept. 11 attacks on New York and outside Washington.

Key December cotton was last traded at 30.81 cents a lb, up 0.23 cent, while trading in a 0.50 cent range from 30.45 to 30.95 cents. March rose 0.31 cent to finish at 32.64 cents.

Back months added from 0.29-0.65 cent.

Floor sources said a combination of speculative, commercial and some fund buying gave cotton a mild boost, although producer and merchant sales served to place a cap on the market.

The improving technical picture is attracting the specs, said Mike Stevens of Swiss Financial Services in Mandeville, Louisiana. He added that merchants and mills seem to be coming out of hibernation for coverage across the board.

Analysts said the volume of business being done was fairly decent despite the tight ranges prevailing in futures.

They said trade, speculative and option buying was seen near the market’s lows, while producer selling lurked above the market.

Trade accounts were said to be doing some forward spreading in Dec/March, Dec/May and Dec/July, floor brokers said.

They added that the market’s firmer tone was likely aided by an increase in the Cotlook A Index, which rose 0.30 cent to 35.25 cents, the first time it had climbed since mid-April.

The A Index is used by the trade as an indicator of global cotton demand.

In other news, the weekly spec/hedge report from the New York Board of Trade showed the funds with a net short position of 18.4 per cent as of last Friday, against a net short standing last week of 26.6 per cent.

Technicians said support in the December cotton contract should be at 30.50 and 30 cents while resistance would be at 31 and 31.50 cents.

Estimated volume traded reached some 8,000 lots against the prior tally of 6,480 lots.—Reuters