ICE cotton futures tumbled more than 2 percent on Monday, touching the lowest level since November 15 as investors liquidated long positions. The March cotton contract on ICE Futures US hit a session low of 69.53 cents per lb, a bottom since November 15, while recording its biggest daily percentage fall since October 31. "What we are seeing is lot of speculative liquidation...
I think we are seeing the longs throwing in the towel," said Louis Rose, an independent cotton trader and consultant
ICE cotton futures registered the biggest one-day percentage loss in more than two weeks in thin trading on Friday, but the natural fiber also marked its first weekly gain in four weeks. "The market is somewhat stuck in neutral because the strength of the US dollar has sort of captivated cotton's attention," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia.
"The market is figuring out if the dollar has topped out now or if it is going to move higher." The
