Speculators go net long in cotton on quality concerns

Speculators go net long in cotton on quality concerns

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* Graphics http://r.reuters.com/buv87r

* Speculators cut sugar net long by 70 pct (New throughout, adds details, graphic link)

Oct 19 (Reuters) - Speculators turned to a net long position in cotton contracts on ICE Futures U.S., in the week to Oct. 16 when the futures market jumped 6 percent on near-term concerns about the fiber's quality, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

The noncommercial dealers added 8,035 cotton futures and options contracts, switching to a net long position of 5,308 contracts, after holding a net short position for the two previous weeks.

Some cotton traders suspected the cotton being harvested early in the southeastern United State had high levels of micronaire, which causes coarse fibers that could break during the spinning process at textile mills.

The speculators cut their net long position in raw sugar by 70 percent as the futures market tumbled roughly 7 percent as pressure from ample global supplies weighed on the market.

They cut their net long position in raw sugar futures and options by 18,151 lots, bringing it to 7,936 lots, CFTC data showed.

They raised their net long position in cocoa by 1,314 contracts to 15,289 contracts while they increased their net short position in arabica coffee by 7,023 contracts to 21,979 contracts.

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