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Cotton futures soar

NEW YORK: NYCE cotton futures were higher at midday on trade and speculative buying after U.S. Census Bureau released bullish monthly consumption data that surpassed analysts' expectations, traders said.

Census said consumption rose to 1,028,102 bales in March from 786,813 bales a month earlier.

"This isn't what we were looking for," one trader said.

He said a trend to stronger domestic usage could carry July cotton into the 90.00 cent a lb range, and new-crop December into the high 80.00 cent range.

The market will look to next month's report to gauge if today's data marked the beginning of a trend, analysts said.

Sharon Johnson, analyst with Frank Schneider and Co Inc, said prices are not likely to climb much higher, and cited increasing certificated stocks.

"Unless we find a home for that cotton it will be a huge weight on the July contract," Johnson said.

Certificated cotton stocks as of April 24 totaled 177,562 bales, up from 172,993 bales the previous session.

At 1126 EDT, July was up 1.10 cents at 85.72 cents, traded from 86.50 and 85.25. New-crop December was up 0.53 at 82.40 after reaching a lifetime high of 82.45.

Market sources called the USDA's weekly export in line with expectations. Shipments for the week ended April 18 totaled 100,800 bales compared with 121,900 bales last week.-Reuter