March 19, 2006	Sunday	Safar 18, 1427

NEW YORK, March 18: Cotton futures ended easier on Friday on speculative sales in subdued dealings and the market is seen staying range-bound going into next week, analysts said.

The New York Board of Trade’s May cotton contract shed 0.43 cent to finish at 54.06 cents a lb, trading from 54.05 to 54.55 cents. July fell 0.48 to 55.30 cents. One contract aside, the rest lost 0.20 to 0.40 cent.

The locals keep trying to push it down, but it just keeps bouncing back, said Jobe Moss, an analyst for brokers and merchants MCM Inc. in Lubbock, Texas.

A report by Sharon Johnson, cotton expert for First Capitol Group in Atlanta, said cotton may simply be continuing its base-building that ultimately will lead to higher prices over time but it is frustrating not getting a definitive answer, either way, thus far.

The market has pretty much digested the strong pace of U.S. cotton exports, and talk of drought in key growing areas of the Southwestern United States has not yet elicited a strong reaction in the trading pit, dealers said.

Analysts said speculators have consistently tried to push cotton prices below 54 cents, basis May, but steady support from trade accounts has served to limit losses in the market.

Demand is good but sporadic with sizable inquiries just below current prices, said Johnson.

Either the mills will be rewarded for their patience should futures move down to or through last week’s low of 53.75 (cents), basis May, or (they) will be forced to pay up while chasing (the) May and July (contracts), she added.

Traders said the market will be turning its attention in two weeks’ time to the annual potential plantings report by the U.S. Department of Agriculture which is due out on March 31.

Brokers Flanagan Trading Corp. sees resistance in the May cotton contract at 54.10 and 54.70 cents, with support at 53.80 and 53.30 cents.

Floor dealers said final trading volume was estimated at 11,000 lots, from the prior count of 10,666 lots. Open interest fell 346 lots to 129,820 contracts as of March 16. —Reuters