Cotton hits 4-1/2 months low

ICE cotton futures fell to a 4-1/2-months low on Wednesday on expectations of increased production in the United States. Government data on Monday showed that as of June 11, 92 percent of the US crop had been planted compared to a 5-year average of 90 percent.

"There is some concern regarding the size of the US crop and potential exports. We think the crop is rated in better condition than what it is. But, that's what the USDA has published and market is going to trade," said Louis Rose, co-founder and director of research and analytics at Rose Commodity Group, said in a note. Cotton contracts for December settled down 0.87 cent, or 1.21 percent, at 70.95 cents per lb. It traded within a range of 70.86 and 72 cents a lb.

Prices hit a low of 70.86, its worst since January 24. Total futures market volume fell by 10,404 to 37,025 lots. Data showed total open interest gained 472 to 234,543 contracts in the previous session. Certificated cotton stocks deliverable as of June 13 totalled 468,011 480-lb bales, up from 458,935 in the previous session.