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NY cotton

futures lower

NEW YORK: Long-awaited thunderstorms that hit West Texas over the weekend nudged funds and commission houses out of long positions, prompting NYCE cotton futures to settle sharply lower, dealers said on Tuesday.

But prices came off their lows early in the session, and market sources warned that parched crops will need much more rain to provide relief.

Dust storms that followed the rain in some areas may have damaged freshly-planted cotton crops.

"People are still trying to assess whether the rain did more good than harm," said Jarral Neeper, an analyst with Calcot Ltd.

He pegged support at 80.00 cents a lb basis July, and cited stops under 80.50 cents a lb in December.

Most-active July ended 1.25 centd a lb weaker at 81.30 cents, traded from 81.70 to 80.60 cents. October closed 1.28 lower at 81.69, while new-crop December settled 1.50 lower at 81.35.

Volume was estimated at 11,000 lots.

The market awaits news from a meeting of the American Cotton Shippers Association later this week, in which the USDA is expected to address concerns over the possibility of surging imports.-Reuter