December posted 1.4% gain for the month. Traders had plenty of U.S. economic information to digest.
Cotton futures chugged along to nowhere Wednesday, finishing little changed as traders had plenty of U.S. economic information to assess.
Benchmark December eked out a four-point gain to settle at 85.18 cents, just below the middle of its tight 78-point range from up 36 points at 85.50 to down 42 points at 84.72 cents.
December, which stayed within the prior-day trading span, gained 117 points or 1.40% for the month. March spent the session within a mere 38-point range and settled down a point at 83.53 cents.
Volume increased to an estimated 14,601 lots from 13,905 lots the previous session when spreads totaled 3,015 lots or 22% and EFS 12 lots. Options volume totaled 7,904 calls and 4,498 puts.
The market digested a Federal Reserve policy statement that was viewed as giving no indication that a reduction in the pace of its stimulus program is imminent after reports earlier in the day showed upbeat economic growth and private-sector jobs data.
The Fed said the economy is growing modestly, a downgrade from its June assessment, The Associated Press reported. The Fed expects growth to pick up in the second half of the year, but it said it will keep buying $85-billion-a-month in bonds to help lower long-term interest rates.
And it said it plans to hold its key short-term rate at a record low near zero at least as long as the unemployment rate stays above 6.5% and the inflation outlook remains mild.
The U.S. economy picked up slightly in the second quarter of the year, though the overall pace of growth remained lackluster as consumers held back and the federal government continued to cut spending, Dow Jones Newswires reported.
The nationΆs gross domestic product, the broadest measure of goods and services produced across the economy, expanded at an annualized 1.7% pace from April to June after growing just 1.1% in the first three months of the year and nearly grinding to a halt at the end of 2012. Economists surveyed by Dow Jones had forecast GDP growth of 0.9% for the second quarter.
Separately, private U.S. businesses created 200,000 jobs in July, more than the 183,000 economists had expected, Dow Jones also reported.
However, recent signs the economy is softening have included data showing consumer confidence fell in July and retail sales for June came in below expectations.
Futures open interest expanded 2,200 lots Tuesday to 169,378, with DecemberΆs up 1,614 lots to 144,303 and MarchΆs up 365 lots to 17,818.
Certificated stocks continued to decline, falling 6,061 bales to 146,797. No cotton awaited review.
World values as measured by the Cotlook A Index gained 45 points Wednesday morning to 92.50 cents. The premium to TuesdayΆs December futures settlement widened two points to 7.36 cents.
