NEW YORK, Nov 8: NY cotton futures rallied on broad buying to settle on Wednesday at a five-week peak, with most operators saying the near free-fall which took prices down to near 30-year lows appears to be over.

I think we’ve probably seen the lows, said Jobe Moss of brokers and merchants MCM Inc. in Lubbock, Texas. But that doesn’t mean we can’t go back and retest that bottom.

He said cotton can retest the lows as it did in 1986 and then finally spring higher on a permanent basis.

Frank Weathersby of Affinity Trading in Destin, Florida said the lows are likely in the market and cotton is now engaged in a modest recovery.

Key December cotton soared 1.42 cents, or by 4.61 per cent, to close at 32.23 cents a lb, trading from 31.10 to 33.70 cents. It was the best close for the market on a spot continuation basis since Oct. 4, when it ended at 33 cents.

Second position March jumped 1.31 cents to end at 33.95 cents, having traded from 32.90-35.40 cents.

Back months surged by 1.20-1.41 cents.

Brokers and floor sources said speculative, commercial and fund buying powered the market from the start and the spike in futures was likely spurred on by the fact that most players were already exceedingly bearish on cotton futures.

Traders said technical resistance in the December cotton contract would now be at 32.80 and then the session high of 33.70 cents.

They said the day’s low of 31.10 cents would constitute a good level of support, followed by 30.60 cents.

Estimated volume traded reached some 18,000 lots against the prior tally of 8,970 lots. —Reuters