NEW YORK, Sept 6: Cotton futures finished on Friday at its lowest level in nine months as a weak US job figure underscored fears that fiber demand will soften in a struggling global economy, analysts said.

Key December cotton futures sank 2.62 cents to end at 65.84 cents per lb. The contract moved between 65.61 to 68.59 cents.

Volume traded in the December contract stood at 24,638lots at 2:55 p.m. (1855 GMT).

The US Labour Department said 84,000 jobs were lost in August, larger than the 75,000 forecast by economists and the 60,000 lost in July.

Analysts said the figure set the tone for trading in the cotton market and seemingly drove home the point that demand could fall in a weakening economy.

The fears of demand slipping far outweigh (production losses), said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana.

The jobs (report)...was even worse, he said, adding the data fueled fears that cotton use would suffer because of a global economic slowdown.

Worries over demand resurfaced in the US Agriculture Department’s weekly export sales data. USDA said total US cotton sales amounted to 24,600 running bales (RBs, 500-lbs each), from 269,100 RBs last week and trade expectations it would range from 250,000 to 300,000 RBs.

The market lost heart

even though Hurricane Gustav likely led to losses in US cotton production in Louisiana and the upcoming Hurricane Ike may lead to further falls in output when it strikes next week - analysts.

Brokers Flanagan Trading Corp pegged support in the December contract at 65.40 and 64.50 cents, with resistance at 66.35 and 67.55 cents.

Volume traded Thursday was 15,528 lots - exchange data.

Open interest in the cotton market rose 1,236 lots to 219,826 contracts as of Sept 4 - the exchange said.—Reuters