ICE cotton futures little changed with focus on trade talks
ICE cotton futures little changed with focus on trade talks

ICE cotton futures little changed with focus on trade talks

A- A+

April 2 (Reuters) - ICE cotton futures were barely changed on Tuesday, as investors closely tracked developments in the trade negotiations between the United States and China, while prices experienced strong technical resistance levels.

* The front-month cotton contract on ICE Futures U.S. , settled down 0.09 cent, or 0.12 percent, at 77.27 cents per lb.

* It traded within a range of 76.47 and 77.37 cents per lb.

* "Market is consolidating, yesterday prices went up to 78 cents per lb which has been strong resistance, so today we are giving back some gains," said Jack Scoville, vice president at Price Futures Group in Chicago.

* "We are keeping a very close eye on the trade talks and hoping for the best. People are expecting something might happen but nothing has happened yet," Scoville said.

* A top U.S. Chamber of Commerce official said chances were increasing for a deal to end the U.S.-China trade war but that negotiations this week were "critical" to resolving stubborn differences over an enforcement mechanism and a plan to lift U.S. tariffs on Chinese goods.

* The dollar index was up 0.2 percent. A stronger greenback makes commodities priced in dollars more expensive for holders of other currencies.

* "ICE futures should experience resistance near 78.00-79.00 cents and then 80.00 cents, basis May, over the near-to-medium-term," Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group, said in a note.

* Investors are also keeping a close watch on the weather updates as flooding in the U.S. Midwest threatened to disrupt field work, with forecasts for heavy spring rains.

* Total futures market volume fell by 2,949 to 34,971 lots. Data showed total open interest gained 2,044 to 227,930 contracts in the previous session.

* Certificated cotton stocks <CERT-COT-STX> deliverable as of March 29 totaled 34,482 480-lb bales, down from 46,544 in the previous session.

(Reporting by Brijesh Patel in Bengaluru; Editing by Peter Cooney)

Source: Reuters

Tags

newsletter

Subscribe to our daily newsletter