© Reuters. ICE cotton futures rises on China weather concerns
May 16 (Reuters) – ICE cotton futures rose on Wednesday in their biggest one-day percentage gain in nearly 2 weeks, on worries over crop damage in China’s major cotton growing region of Xinjiang following heavy rains.
* The most active ICE cotton contract for July expiry CTc1 CTN8 settled up 0.59 cent, or 0.70 percent, at 84.35 cents per lb.
* The contract traded within a range of 83.63 and 85.39 cents a lb.
* "It has to do with heavy rains in China’s cotton growing areas of Xinjiang, price is reacting to the Chinese market, which was up last night due to this weather," said Beau Stephenson, Senior Vice President at Omnicotton Inc.
* The contract rose to its highest one-day percentage gain since May 4.
* "The Chinese speculative buying overnight spilled over into the U.S. futures," said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.
* The U.S. Department of Agriculture’s (USDA) weekly export sales report are due on Thursday.
* Market participants are keeping a close watch on rain forecasts in Texas.
* ICE cotton contract for December expiry CTZ8 rose 0.7 percent to 80.69 cents.
* "Rain and showers began to appear over portions of parched West Texas yesterday afternoon, but the heaviest accumulations were again centered northeast of Lubbock, above the Caprock. Chances for further precipitation ahead of this weekend – when chances near Lubbock increase to 80 percent – are slight," Louis Rose, director of research and analytics at Tennessee-based Rose Commodity said in a note.
* Total futures market volume rose by 8,544 to 33,910 lots. Data showed total open interest fell 57 to 282,944 contracts in the previous session.
* Certificated cotton stocks CERT-COT-STX deliverable as of May 15 totaled 79,220 480-lb bales, up from 78,173 in the previous session.
* India’s 2017/18 cotton production was seen at 34.86 million bales vs previous forecast of 33.92 million bales.
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