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Cotton futures higher

NEW YORK: NYCE cotton futures were trading higher at midday on commission house and light speculative buying, market sources said.

"There are only four days until first notice period and the mills still have fixing to do," said Merrill Lynch analyst Judith Ganes.

The first notice day for the May contract is May 1.

Meanwhile, talk that China is in the market for cotton, and a drought in West Texas, added fuel to the market, industry sources said.

One Texas-based trader said insurance agents have already begun to file claims for failed crops in 1996/97. Plantings in West Texas begin in March, and a drought there has reduced planted acreage.

In addition, the U.S. Department of Agriculture said sales totaled 4,400 running bales for the week ended April 11, a 62 percent decrease from the week-ago period. Shipments totaled 121,900 bales, off from 154,600 bales a week earlier.

"Net sales were low, but considering how high the market was last week when the business was done, it is a good number," one trader said.

The spot May contract closed at a weeklong high of 87.37 cents a lb.

At 1133 EDT, May cotton was up 0.55 cent to 84.00 cents a lb, having ranged from 84.00 and 83.40 cents a lb. July was trading 0.48 cent firmer at 84.15 cents. The deferred months were also trading firmer.-Reuter