Jul 11, 2018
July 10 (Reuters) - ICE cotton futures rose to a three-week high on Tuesday, ahead of a monthly crop supply and demand report due later this week, as investors covered their short positions.
* The most active cotton contract on ICE Futures U.S., the second-month December contract CTc2 CTZ8 , settled up 0.91 cent, or 1.06 percent, at 86.38 cents per lb.
* It traded within a range of 85.13 and 86.41 cents a lb, touching its highest level since June 19.
* "The volume has been light. ... The fact that open interest is going down tells this is not speculative buying but is mainly some short-covering by trade members," said Peter Egli, director of risk management at British merchant Plexus Cotton.
* "Some of them have decided to fix, buy some of their shorts back and that has brought the market up," Egli said.
* Total futures market volume fell by 3,223 to 17,712 lots. Data showed total open interest fell 697 to 251,867 contracts in the previous session.
* The markets are now awaiting the release of U.S. Department of Agriculture's (USDA) monthly World Agricultural Supply and Demand Estimates (WASDE) on Thursday.
* The USDA in its weekly crop progress report released on Monday showed the 2018 U.S. cotton crop was 41 percent in good or excellent condition compared with 43 percent a week ago and 61 percent last year. Certificated cotton stocks CERT-COT-STX deliverable as of July 9 totaled 33,604 480-lb bales, up from 33,224 in the previous session. --- Reuters (Source: in.investing.com)