Forexpros – Cotton futures traded in a tight range on Thursday, swinging between modest gains and losses as investors stuck to the sidelines ahead of the U.S. Department of Agriculture’s report on U.S. and global supplies of the fiber.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD0.9369 a pound during European afternoon trade, easing up 0.08%.
The March contract traded in a range of USD0.9444 a pound, the session high and USD0.9367 a pound, the daily low. On Wednesday, prices fell to USD0.9356 a pound, the lowest since February 2.
Cotton traders were awaiting the U.S. Department of Agriculture’s closely-watched World Supply and Demand Report. The data could show a downward revision to U.S. cotton output in the current marketing year as well as possible adjustments to world consumption.
In its January report, the USDA estimated the U.S. cotton harvest would total 15.67 million bales.
Cotton traders were also eyeing the release of an annual survey by the National Cotton Council due out after markets close on Friday. The data was expected to shed light on potential U.S. cotton plantings this year.
According to agricultural analysts, the survey was expected to show U.S. farmers reduced their 2012 cotton plantings by nearly 12% to approximately 13.002 million hectares.
Meanwhile, markets showed a muted reaction to data showing an unexpected uptick in Chinese consumer prices last month.
China’s National Bureau of Statistics said earlier that consumer price inflation rose by a seasonally adjusted 4.5% in January, accelerating from 4.1% in December.
Month-on-month, the consumer price index rose 1.5% in January from a month earlier, the largest monthly gain in four years.
The data dampened expectations China will ease monetary policy in the near-term to stimulate growth in the world’s second largest economy.
China is both the world’s largest producer and consumer of the fiber. Cotton traders have been focusing on prospects for increased Chinese demand in recent months after the country started a cotton stockpile in September to protect domestic farmers’ interests.
Elsewhere, on the ICE Futures Exchange, coffee futures for March delivery added 0.1% to trade at USD 2.2085 a pound, while sugar futures for March delivery gained 0.25% to trade at USD0.2455 a pound.
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