NEW YORK, Dec 28: NY cotton futures settled with small gains Friday on thin speculative interest, with more sideways action predicted ahead of the New Year holidays next week.

March cotton edged up 0.27 cent to end at 51.80 cents a lb after trading a tight 51.20-51.90 cents. May rose 0.21 cent to 54.98 cents, with the rest flat to up 0.35 cent.

It was very slow, said Keith Brown of commodity trading firm Keith Brown and Co. in Moultrie, Georgia. He said it looks like most of the major players in the market have closed their books for 2002 and may stay out until 2003 rolls in.

Most funds have closed their books for the year, so trading is likely to be quieter between now and the New Year, said a daily report by brokers Flanagan Trading Corp. in North Carolina.

Futures were steady to firmer at the start as modest amounts of speculative buying kept futures on the positive side of the ledger, floor sources said.

It was all locals just goosing it up, but it was sure boring, one said.

Analysts said the weekly USDA export sales report came in at the lower end of expectations. Total net upland cotton sales touched 178,600 running bales (RBs, 500-lbs), below trade expectations it would range from 200,000-220,000 RBs.

But Brown and some dealers said players may derive comfort from the report that China shipped 85,700 RBs.

That lent a “nice undertone for the market,” said Brown.

According to USDA data, China has bought a total of 589,400 RBs of cotton in the 2002/03 marketing year starting in August and total shipments have already reached 322,400 RBs.

USDA, in its monthly production report, projected Chinese cotton imports at 2.0 million (480-lb) bales.

Technicians said resistance in the March contract would be at 52.30 and 53.20 cents. Support is currently calculated at 51 and 50 cents.

Estimated final volume hit 3,700 contracts versus Thursday’s tally of 3,682 contracts.

Open interest rose 114 lots to 76,889 lots as of Dec 26.—Reuters