September 29, 2002	Sunday	Rajab 21, 1423

NEW YORK, Sept 28: NY cotton futures closed stronger across the board on Friday in the aftermath of Tropical Storm Isidore’s torrential downpours, which caused persistent flooding and crop damage in prime cotton growing areas, traders said.

Furthermore, they said, discounts already taken in anticipation of a weak US monthly cotton consumption reading were bought back once Friday’s actual figures were released.

Now that this consumption number is out, and it was somewhat negative, the market knows it. So, it rallied back. We’ve had a little bounce here today, I think, based on that, said Keith Brown of Keith Brown and Co. in Moultrie, Georgia.

Also, based on the knowledge that this storm has done some damage in the (Mississippi) Delta area, Brown said.

December cotton gained 0.56 cent to end Friday at 44.34 cents a lb., after trading from 43.78-44.65 cents. March rose 0.48 cent to 47.00 cents.

The rest settled 0.25 to 0.60 cent higher, with July 2004 setting a new contract high.

Traders said action in the cotton market has been perplexing because the heavy storms caused by Isidore have battered and flooded cotton crops, yet the price has only shown moderate increases

We get this storm and the market has been very reluctant to rally. Then, today, we get this (low) consumption number that I think is negative, and maybe one reason why cotton has been coming down, because the market’s not so much concerned about supply as it is demand, Brown added.

Looking ahead, traders said the next crop report on Oct. 11 should show declining world supply and increasing world demand, which may give cotton prices another boost.

And, while the worst impact from Storm Isidore may have passed, it has not disappeared completely. Furthermore, Storm Lili, which is currently about 160 miles off the coast of Jamaica, seems to be following a similar path to Isidore and may give US cotton fields a second lashing, traders said.

After the close on Friday, the CFTC released its Commiments of Traders report for cotton as of Sept. 24, 2002. The report showed funds with net long postions of 4,743 cotton lots. It also said small speculators held net long positions of 3,679 cotton No. 2 lots.

Earlier on Friday, the Census Bureau also revised July figures upward to 8.68 million bales from last month’s preliminary result of 8.67 million (480-lb.) bales, and compared with 7.85 million last July. Analysts said July consumption was an aberration.

Analysts had forecasts for US consumption ranged from 8.0-8.4 million (480-lb) bales, while the USDA projected US mill use of 7.9 million bales in the 2002/03 marketing year (July/August).

Since December cotton futures broke above two resistance levels on Friday, chartists put their next target at 44.90, then 45.60 cents a lb. Support was seen first at prior resistance of 44.20, then at 43.80, 43.30 and 42.40 cents.

The September 26 count for cotton volume was 6,492 lots, and for open interest was 69,3948 lots, down 47 lots.—Reuters