NEW YORK, Nov 17: NY cotton futures closed firmly Friday on speculative fund-buying following release of a surprisingly friendly USDA export sales report, although near-term direction next week remains unclear.

The tone is supportive, Keith Brown, president of commodity trading firm Keith Brown and Co. in Moultrie, Georgia, said, adding the surge by futures was capped by “a lot of hedge selling at the top of the market’s range.

USDA, in its weekly export sales report, said new upland cotton sales in the week ending Nov. 8 soared to a marketing year peak of 479,000 (480-lb) bales, sharply higher than trade expectations it would range from 140,000-200,000 bales.

Spot December cotton rose 0.45 cent to close at 34.71 cents a lb, trading from 34.35-35.44 cents.

The intra-day high equaled the close on Wednesday, which is the highest finish 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, a mark for cotton last seen in 1972.

Active March went up 0.48 cent to end at 36.25 cents, moving from 35.90-37.10 cents.

Distant months increased 0.20-0.45 cent.

Cotton prices gapped higher at the start and bulldozed north on speculative fund buying as players took heart from the robust sales data, floor brokers said.

But brisk commercial and farmer selling from the 35 cents level in December and higher capped the advance although speculative interest kept cotton in positive territory into the close, they said.

Analysts said market direction in the coming days may be influenced by the need for players to get out of December ahead of first notice day on Monday, Nov. 26.

Dealings will be truncated next week when the market is shut on Thursday and Friday for the US Thanksgiving holiday.

That would leave only three sessions for investors to stream out of December, dealers said.

While this week’s jump in prices as much faster than expected, the trend remains intact and further price advancement will be slow, said the weekly marketing letter of analyst O.A. Cleveland.

Technicians said resistance in December would be at 35.44 cents while support would be at 34 and 33.40 cents. As to March, they see resistance at 37 cents and support at 35.30 cents.

Estimated volume reached 10,000 lots against the previous tally of 17,000 lots.—Reuters