June 23 (Reuters) - ICE cotton futures fell to a one-week low on Tuesday, as advancing U.S. planting raised concerns of an abundant supply as the natural fiber market grapples with demand bottlenecks.
* The most active cotton contract on ICE Futures U.S., the third-month December contract was down 0.58 cent, or 1%, at 59.27 cents per lb by 1:13 p.m. EDT (1713 GMT).
* The contract fell to 58.55 cents per lb earlier in the session, its lowest since June 16.
* “If we hadn’t got any rains overnight and we were dry and hot, it would have been hard (for prices to be low) but it still doesn’t change the fact that we’re going to plant 13.7 million acres,” said Jobe Moss, a broker with MCM Inc in Lubbock, Texas.
* Monday’s crop progress report from the U.S. Department of Agriculture (USDA) showed cotton crop was 96% planted in the week to June 21, more than the 89% reported for the previous week.
* Meanwhile, White House trade adviser Peter Navarro’s statement that the trade deal with China is over, “knocked the market down and it just hasn’t really been able to recover much,” Moss added.7
* U.S. President Donald Trump’s tweet later that the trade deal is fully intact calmed markets.
* Cotton prices have declined more than 16% so far this year, mainly hurt by jitters surrounding the U.S.-China trade agreement and as the coronavirus pandemic crippled demand.
* “Longer-term, the cotton market will need to continue to negotiate bearish supply and demand until the annual June 30 acreage report is released,” Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group, said in a note.
* Total futures market volume fell by 7,458 to 12,785 lots. Data showed total open interest fell 3,042 to 162,447 contracts in the previous session. (Reporting by Asha Sistla in Bengaluru Editing by Marguerita Choy)
