January 26, 2003	Sunday	Ziqa’ad 22,1423

NEW YORK, Jan 25: NY cotton futures settled fractionally higher on Friday in action dominated by small speculators as fiber contracts were cast adrift by the absence of market-moving news.

Key March cotton edged up 0.08 cent to finish at 50.31 cents a lb, trading a tight band between 50.02 and 50.50 cents. May added 0.03 cent to end at 54.33 cents.

Except for one contract, the rest rose 0.08-0.15 cent.

It’s dull and (just) consolidating,” said Frank Weathersby of brokers Affinity Trading in Fort Walton Beach, Florida.

Futures gapped down to their lows after trading started, but gradually came back on buying by small speculators content to let fiber contracts stay in a narrow range, floor sources said.

With speculators just jobbing the market, cotton futures drifted into the close while managing only meager gains, they said.

It’s almost dead which is to say we did very little today, one floor broker said.

Dealers said the weekly USDA export sales report provided some positive backdrop for the market.

USDA said net upland U.S. cotton sales stood at 188,100 running bales (RBs, 500-lbs), which is considered healthy although it remains just below the level needed to reach the USDA target of 10.8 million (480-lb) bales in US cotton exports in 2002/03.

Dealers continued to watch the pace of Chinese cotton buying along with their shipments.

China bought 9,800 RBs in the past week, according to the USDA. Total sales to China since the start of the 2002/03 marketing year stood at 594,100 RBs and shipments reached 541,900 RBs.—Reuters