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Cotton narrowly higher

NEW YORK: NYCE cotton futures were trading narrowly higher at midday on mill and light speculative buying, regaining some of the ground lost in the market's sharp move lower over the past two days, floor sources said.

"We were oversold after dropping 6.00 cents (a lb) in five days, we reached major support on Tuesday, and there was enough mill buying to stop the flow," said Sharon Johnson, an analyst with Frank Schneider and Co Inc.

Johnson, who sees the market heading lower, noted this morning's so-called spec/hedge report, which put the speculators 38.5 percent long as of Friday.

"They may have lightened their load this week but it is just the tip of the iceberg," she said.

One trader said the day's range was likely to have been set, adding that prices could trade down to the unchanged level in order to prompt fresh buying.

At 1151 EDT, May cotton was up 0.08 cent to 83.25 cents a lb, having ranged from 83.85 and 83.02 cents a lb. July was trading 0.50 cent firmer at 84.55 cents.-Reuter