NEW YORK, Jan 3: Cotton futures closed slightly easier on Friday as the market pulled back after surging to a two-month high and fiber contracts may need to consolidate lower next week after rallying late in 2008, brokers said.

The cotton market was shut Thursday for New Year’s Day.

The key March cotton contract declined 0.11 cent to end at 48.91 cents per lb, after moving from 46.04 to 49.44 cents. On Wednesday, the contract closed at its highest level since late October when it was trading around 49 cents.

We were getting overbought so we were due for a break, said Sharon Johnson, cotton expert of First Capitol Group in Atlanta, Georgia.

Cotton futures stumbled in early business, mainly in line with the weaker tone of crude prices, but analysts said the fiber market apparently ran into suspected trade buying or investment short-covering and came back.

USDA said total US cotton sales stood at a meager 67,900 running bales (RBs, 500-lbs each), from 119,000 RBs in last week’s data and trade belief it would range from 100,000 to 250,000 RBs.

USDA said US cotton export shipments reached 137,000 RBs, against 211,100 RBs and trade belief it would be around 200,000 RBs.—Reuters