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  • Dec 22nd, 2012
  • Comments Off on New York cotton hit by pressure from broader commodity market
Cotton eased again on Thursday on a wave of heavy selling across the commodity markets as investors fretted about the US budget crisis, with losses limited by continued speculative interest. "Sideways trading would not normally be significant except that cotton was actually one of the best performers in the broader commodity complex," said INTL FCStone analysts.

The most-active March cotton contract on ICE Futures US settled down 0.06 cent, or 0.07 percent, at 75.83 cents per lb, having recovered some lost ground shortly before the close. Prices languished in negative territory all day, but moved off an intraday low of 75.05 cents after finding support at its 10-day moving average.

---- Fibres down but one of best performers among commodities

"The firm support below 75.25 cents and the push higher at settlement demonstrate continued speculative interest in buying cotton, especially on the pullbacks," the broker's analysts said. The Thomson Reuters-Jefferies CRB index, which tracks 19 futures markets, was down 0.38 percent, as concerns about a deadlock in talks to avert a fiscal crisis and weak US job data offset an upward revision of the country's economic growth.

The cotton market barely reacted to the weekly export sales, with macroeconomic news overshadowing the market, INTL FCStone said. USDA said 333,900 running bales were sold in the week to Thursday, with China, the world's biggest textile market, accounting for half of the total. That was up from the 283,900 bales registered in the prior week, the lowest since November 2 data.

Copyright Reuters, 2012


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