NEW YORK, Nov 16: NY cotton futures sprang to a firmer close Friday on combined trade and fund buying in the market, with rollovers still a top feature in dealings and first notice day right around the corner next week.

December cotton jumped 1.34 cents to settle at 49.01 cents a lb, trading 47.70-49.60 cents. March shot up 1.39 cents to 51.33 cents. Distant months rang up gains of between 0.65-1.23 cents.

John Flanagan, president of brokers Flanagan Trading Corp. in North Carolina, said trade buying in the back months gave futures an initial lift.

That triggered fund buy-stops and we were off to the races, he said.

The buying from trade accounts seen in those months in turn inspired the funds to jack up values in nearby contracts and the market ran stops above 49 cents, basis December, they said.

Mike Stevens of Swiss Financial Services in Mandeville, Louisiana added that a large options order ignited huge buy stops over the market as option locals were forced to cover by buying futures.

Volume on the move was terrific, catching most off guard, he said.

Some modest positive backdrop was likely provided by the weekly USDA export sales report which showed US net upland cotton sales hitting 153,900 running bales (RBs, 500-lbs), slightly above trade belief it would range from 110,000 to 150,000 RBs.

Shipments were also higher-than-expected at 161,100 RBs, compared to expectations it would range from 120,000-150,000 RBs.

It’s a little better than what we were looking for, said Sharon Johnson, cotton expert for Frank Schneider and Co. Inc. in Atlanta.

She added, though, that cotton exports remain way behind the pace needed for US cotton exports to hit the USDA projection of 10.8 million (480-lb) bales in exports for the 2002/03 marketing year (July/August).

The December/March spread expanded to 2.32 cents from Thursday’s 2.27 cents.

Technically, analysts see resistance in the December cotton contract at 49.85 and 50 cents. Support is at 47.50 and 47.05 cents. Floor dealers said estimated final volume hit 26,000 lots, against the prior tally of 19,509 lots. Open interest fell 4 lots to 83,592 lots as of November 14.—Reuters