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Cotton prices rice on mill buying

NEW YORK: Nyce cotton futures settled higher on mill buying ahead of first notice day for the May contract on April 24, while several fundamental factors lent support to prices, market sources said on Thursday.

"We were up in cotton because of the upward move in the (Chicago) Board of Trade," said Sharon Johnson, an analyst with Frank Schneider and Co Inc. She was referring corn, soybean and wheat futures, which surged to fresh highs today.

"Cotton has to go up to maintain a competitive stance," Johnson said.

A drought in West Texas, and talk that China was in the market for cotton, lent support to prices, analysts added.

The U.S. Department of Agriculture's export report was also slightly bullish. While both sales and shipments declined from the week-ago period, prices had reached a ten-week high of 87.37 cents a lb, when the committments were made.

Sales for the week ended April 11 totaled 4,400 bales, 62 percent below the week-ago period. Exports of 121,900 bales were 21 percent below the previous week, the USDA said.

May settled 0.87 cent firmer at 84.32 cents a lb, having ranged from 84.40 to 83.40. July rose 0.92 cent to 85.59, while the deferred contracts also closed higher.

New crop December traded at a lifetime high of 81.55 before closing at 81.50, up 0.85.

Volume was estimated at 9,500 lots.-Reuter