Cotton futures fell for fourth straight session on Thursday as mixed signals on the US-China trade talks weighed on investor sentiment that overshadowed a positive weekly export sales report from the US Department of Agriculture (USDA).
Cotton contracts for March fell 0.46 cent, or 0.72% to 63.82 cents per lb by 01:50 p.m. EST (1850 GMT).
The cotton market finished slightly lower amid positive sales and exports numbers versus the winding down of the spot December contract. Weekly sales, although not a marketing-year-high as last week’s data showed, were, nonetheless, above 227,000 contracts.
The latter point relates to the necessary melt in spot December’s open interest. Thursday morning that amour was less than 8,000 contracts, so there were a lot of straight fixations and/or rolls to the March or other deferred months.
A Western Disturbance lies over North Afghanistan and adjoining Pakistan region. And an induced Cyclonic Circulation can also be seen over Punjab and neighboring east-central Pakistan. There is a Cyclonic Circulation over Bangladesh at lower levels while an upper air trough is extending from the Comorin region up to North Kerala.