NEW YORK, Oct 16: NY cotton futures settled on Monday just above fresh 15-year lows on further broad sales as the glum fundamental outlook of more than ample supplies and abysmal demand appears set to further undermine fiber prices.

It’s just more pessimism about consumer demand, said Frank Weathersby of Affinity Trading in Destin, Florida.

December cotton lost 0.68 cent to settle at 31.33 cents a lb, trading from 32.20 to 31.26 cents, which is only a few ticks away from the contract’s lifetime nadir of 31.20 cents.

March declined 0.54 cent to finish at 32.93 cents.

Back months lost between 0.20-0.78 cent.

Cotton futures lost some ground at the start of business in sympathy with fresh falls in the Cotlook A Index which fell 0.40 cent to 37.15 cents.

The A Index is used by the trade as an indicator of global cotton demand and it has been falling steadily in tandem with New York cotton futures.

Weakness in the Dow Jones and in Chicago grain markets contributed to the market’s soft tone, brokers said.

After some light bottom-picking around the middle of the session, the very modest advance was scuppered by producer-related and local sales which drove prices down to near their lows at the end of the day, they said.

The producers and locals just dumped on the market, a dealer stated.

Buy stops are believed to be no closer than 32.80 (cents, basis December), according to Mike Stevens of Swiss Financial Services in Mandeville, Louisiana.

Analysts said the market will not be able to mount any kind of sustained rally unless demand picks up and fears of a global recession triggered by the Sept. 11 aerial assaults on New York and outside Washington finally fades from view.

Technicians said support for the December cotton contract would still be at the key psychological target of 30 cents. That would be followed by the recent spot continuation low of 29.50, followed by 27.80 cents.

Resistance in the contract was seen at 32 and 32.50 cents, and then in layers up to 35 cents.

Dealers estimated final volume traded at some 7,000 lots, compared with the previous tally of 6,975 lots.—Reuters