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NEW YORK, Nov 3: NY cotton futures ended a narrow seesaw session by closing on either side of unchanged Friday, stalling after a welcomed midweek bounce lifted traders spirits, brokers said.
It was a slow news day. The A Index stopped going down. Funds covered on the opening but co-op selling came in on the highs and the market dipped until some mill fixation developed on the lows, said Sharon Johnson, cotton analyst with Frank Schneider and Co., Inc. in Atlanta.
The key December cotton contract dipped 0.07 cent to close at 29.96 cents a lb, moving from 29.77-30.45 cents.
Brokers said the today’s price action was a further consolidation of Wednesday’s 3.4 per cent spurt to 29.90 cents a lb.
Traders also noted that Friday’s close above the 28.86 level broke a string of eight weekly lower closes.
March ended just a scant 0.01 cent lower to 31.62 cents.
Distant months increased from 0.03-0.10 cent except for the July 2003 and October 2003 contracts which settled 0.15 cent lower.
Cotton prices have sunk recently to near 30-year lows, depressed by slack demand, ample supplies and a recession induced by the Sept. 11, plane assaults on New York and outside Washington.
Futures rallied on the opening Friday on short-covering by commodity funds but selling by merchants and cooperatives capped the early advance.
Mill fixation buying developed on the lows in the March, May and July contracts.
The nearby December and March contracts would have closed higher on the day, but late long liquidation by locals ended those hopes, brokers said.
The Cotlook Index A, a compilation of five cottons, was unchanged at 34.95 and one trader hoped it meant that cotton prices may have stabilized.
Cotton keeps going down and down. It doesn’t respect any support area, they complained.
Technicians said support in the December cotton contract should be at 29.50 and 29 cents. Near-term resistance would be near 30.50 cents and then 31.95 cents.
Estimated volume traded reached around 7,500 lots against the prior tally of 12,627 lots.—Reuters
