ICE cotton futures settle lower
The nearby May contract moved up and down over the course of the day, struggling to find direction, but remaining in a somewhat narrow 64-point range. As the session came to a close, sellers took over, moving the most active contract back to negative ground. The May ’16 contract traded between 59.35 to 59.99 cents/lb, which was a lower high and higher low than yesterday’s range.
The December ’16 contract traded between 59.45 to 59.92 cents/lb, which was a higher high and higher low than yesterday. Yesterday’s low of 58.76 cents/lb was a new life of contract low. Interest is increasing in the December ’16 contract.
Liquidation continues in the March ’16 contract as its first notice day is quickly approaching on February 23. ICE estimated volume at 36,100 contracts, its lowest amount since January 29.
Total open interest decreased by 15,214 contracts to 188,677. March ’16 decreased by 25,349 contracts to 19,544 while May ’16 increased by 6,491 contracts to 104,160. Certificated stocks were last reported at 50,283 bales, which included new certs for 13,098 bales and decerts for 636 bales.