Cotton futures slip from near two – week peak on profit – taking
ICE cotton futures settled lower on Wednesday, as investors booked profits after prices rose to nearly two-week highs earlier in the session.
The most active cotton contract on ICE Futures U.S., the May contract , settled down 0.4 cent, or 0.54 percent, at 74.21 cents per lb.
However, the second-month contract hit its highest level since Feb. 22, at 74.90 cents during the session.
"Market propped up to new highs, got little bit of profit-taking," said Jon Marcus, president of the Lakefront Futures and Options brokerage firm in Chicago.
"Market is entering a zone where it's slowly starting to build a rally here...starting to see little bit of an urgency now with this market making new highs," Marcus said.
The contract on Tuesday rose more than 2 percent to over a one-week high and posted its biggest one-day percentage gain since Feb. 21....
Market now awaits fresh developments on the trade negotiations between the United States and China with President Donald Trump saying that trade talks are moving along well.
"We continue to believe that a trade accord between the U.S. and China is forthcoming – the U.S. wants one and China needs it," said Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group in a note.
The U.S. Department of Agriculture's World Agricultural Supply and Demand Estimates (WASDE) report is due Friday.
Total futures market volume fell by 983 to 29,811 lots. Data showed total open interest fell 1,095 to 223,290 contracts in the previous session. Certificated cotton stocks deliverable as of March 5 totalled 131,497 480-lb bales, unchanged from 131,497 in the previous session.