NEW YORK, Nov 15: NY cotton futures ended on a mixed note on Wednesday, although key December clawed its way to an eight-week high when trade and local buying reversed an early downturn in the market.

You have to be fairly impressed that it’s holding, Jarral Neeper, analyst of co-op Calcot Ltd. in Bakersfield, California, said.

Cotton prices have come roaring back in a rally after sinking last month to near 30-year lows.

Late in the day, there was definitely trade buying that came in, added Mike Stevens of Swiss Financial Services in Mandeville, Louisiana. It’s held up remarkably well.

Key December cotton increased 0.23 cent to close at 35.44 cents a lb, in the top half of its 34.60-35.60 cents trading range.

It was the best close for cotton on a spot continuation since Sept. 17 when it finished at 35.58 cents. Last month, the contract dove to a lifetime low of 28.20 cents, the lowest mark for cotton since 1972.

March shed 0.04 cent to settle at 36.85 cents.

Back months were mixed, ranging from 0.50 cent softer to 0.20 cent firmer.

Cotton prices gapped higher at the start of trade when fund buying pushed most contracts to their highs for the day, floor sources said.

We saw a lot of profit-taking after that, said Joe Carney of brokers STA Trading Services in Memphis, Tennessee. (Then), we ran into a lot of buying at the lows.

Stevens said the move by futures back into the positive side of the ledger was accomplished with trade-on-trade as well as speculative buying.

Another positive factor for cotton was an increase for the third straight session in the Cotlook A index, which is used by the trade as an indicator of global cotton demand, as it went up 1.70 to 38.20 cents.

Resistance in the December cotton contract is now pegged at 35.60 and then 36 cents, with some dealers grousing that a topside target of 40 cents seems likely. Support in the contract was now pegged at 34.60 and 34 cents.

Estimated volume reached 16,000 lots against the previous hefty tally of 29,297 lots.—Reuters