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Cotton futures move up

NEW YORK: NYCE cotton futures made strong gains in morning and midday trading, as funds were Lured in following good trade buying earlier on, with July becoming the most-active month, traders said.

"There is a lot of speculative buying in July, and a lot of producers lifted their hedges in May", a floor source said. "Technically the market looks fantastic and the funds continue to buy".

Traders could see no fresh fundamental news to justify the present rise.

July open interest is now slightly ahead of May. At 1228 EDT, July cotton was up 1.20 cents at 89.47 cents per lb, traded 90.10 to 88.35 cents. May was up 1.45 cents at 88.35 cents.

A broker said the market would meet resistance when it tried moving higher than 90.00 cents per lb, basis July.-Reuter