NEW YORK, Oct 8: Cotton futures finished mixed on Friday in thin trade as market players sat back to wait for the release next week of a key government crop report, brokers said.
The New York Board of Trade’s key December cotton contract eased 0.12 cent to end at 53.63 cents a lb, ranging from 53.21 to 54.10 cents. March was steady at 55.40 cents. One contract aside, the rest were flat to 0.10 cent easier.
Last month, the USDA reduced its estimate for Chinese cotton production in 2005/06 to 25.5 million bales from the previous month’s 26 million bales. Chinese cotton imports were seen up to 14.3 million from 14 million.
Should China’s crop fall by more than expected, they may have little choice to increase imports benefiting US (cotton) exporters, said Sharon Johnson, cotton expert for First Capitol Group in Roswell, Georgia.
Floor dealers said estimated final volume at 4,500 lots, from the previous tally of 12,499 lots. Open interest in the cotton market rose 985 lots to 111,506 lots as of Oct. 6. —Reuters
