"We're just rolling March into May. This will dominate trading for the next few days," said Keith Brown, president of commodity firm Keith Brown and Co in Moultrie, Georgia.
Market players are transferring positions from the March contract and into back months since the spot month will go into delivery on February 22. There are only 12 sessions left before the market goes into first notice.
Open interest in March fell 1,737 contracts to 49,766 lots as of February 1 while interest in May went up 969 to 19,279 contracts.
"We're really not going to see a whole lot in this market except for rolling, Once we get past first notice, then we can take a look at where May is headed," a broker said.
The market has been able to digest the record US cotton harvest and similarly plentiful crops in other places like India and China. Robust consumer demand has partly offset that bearish fundamental.
Looking toward the US Department of Agriculture's weekly export sales report, cotton brokers said they expect total US cotton sales
The brokers feel US cotton sales would range from 280,000 to 350,000 running bales (RBs, 500-lbs each), versus sales in last week's report of 285,300 RBs.
"We're looking at very good sales, maybe near the upper end of what most people are expecting," one said.
Brokers Flanagan Trading Corp sees support in the March contract at 43.55 and 43.05 cents, with resistance at 44.55 and 45.35 cents.
Floor traders said estimated final volume amounted to 12,000 contracts, off from Tuesday's tally of 13,491 lots. Open interest fell 531 contracts to 90,430 lots as of February 1.