Cotton futures little changed after touching 6-week high

Cotton futures little changed after touching 6-week high

Oct 24 (Reuters) - ICE cotton futures remained largely unchanged on Tuesday, a day after it registered its biggest one day percentage gain, as the market waited for updates on a weather scare in top producing state Texas.

Cotton contracts for December settled down 0.18 cent, or 0.26 percent, at 69.54 cents per lb. It traded within a range of 69.02 and 70.22 cents a lb - a peak since Sept. 12. In the previous session, the contract rose over 4 percent marking its largest one day percentage gain on concerns of crop damage due to freezing weather forecasts later in the week.

"Today the market was waiting for more news to see if the weather forecast changes," said Peter Egli, director of risk management at British merchant Plexus Cotton. "Crops that haven't finished developing yet will probably not make any fiber. If the freeze happens, probably half a million to a million bales will be lost in West Texas," Egli added.

According to the U.S. Department of Agriculture's weekly crop progress report released on Monday, 31 percent of cotton crop was harvested in Texas by the week ended Oct. 22, up from 30 percent in the previous week.

"The market will probably stay firm going into the weekend," Egli said, adding, "if the freeze does happen and there are some reports of losses we could see some more short covering or little spike early next week."

Total futures market volume fell by 20,601 to 33,595 lots. Data showed total open interest gained 3,904 to 231,951 contracts in the previous session. Certificated cotton stocks deliverable as of Oct. 23 totaled 2,343 480-lb bales, down from 2,344 in the previous session.

(Reporting by Eileen Soreng in Bengaluru)

Source: Reuters
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