Reuters | 4 November 2017
NEW YORK: (Reuters): ICE cotton fell on Monday as investors took profits after the contract trudged into overbought territory, amid a stronger US dollar. Cotton contracts for March settled down 0.7 cent, or 0.96 percent, at 72.58 cents per lb. It traded within a range of 72.5 and 73.35 cents a lb.
Last week, prices touched an over 2-1/2-month high fuelled by technical buying. The contract registered its sixth consecutive weekly gain and was up about 1.9 percent for the week.
“The overbought condition, a strong US Dollar Index and rumours of exports slowing are prompting speculators to take some profit,” said Louis Rose, co-founder and director of research and analytics at Rose Commodity.
Meanwhile, speculators raised net long position by 15,551 contracts to 66,511 in the week to Nov. 28, Commodity Futures Trading Commission data showed on Friday. Total futures market volume fell by 8,902 to 15,697 lots. Data showed total open interest gained 2,443 to 248,781 contracts in the previous session.
Certificated cotton stocks deliverable as of Dec. 1 totalled 47,628 480-lb bales, down from 47,729 in the previous session. The dollar index was up 0.39 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 1.02 percent.—Reuters
(Source: Business Recorder)