ICE Cotton Futures Ended One Percent as 73 Cent

Intercontinental Exchange (ICE) Cotton futures ended 1% lower on Monday, hitting a seven-month high in the previous session as investors were watching the monthly crop report ahead of higher prices.

March cotton settled 0.72 cent or 0.98 percent lower at 73 cents a pound and traded at 72.8-73.83 cents.

According to Rogers Varner, president of Varner Brokerage, "the demand for cotton at 74 cents is much less than 70 cents."

"Speculators settled some long positions ... they are willing to settle some positions."

Last Friday, the contract rose to 74.28 cents the highest since May 4.

Market awaits USDA Global Agricultural Commodity Supply and Demand Forecast (WASDE) to be released on Tuesday.

"I expect the U.S. exports to increase and crop yields in Brazil and India to be cut due to the local occurrence of cotton bollworm."

In its November crop report, the USDA raised its US output forecast to 21.38 million bales, up from October's estimated 21.1 million bales, but lowered global year-end inventories by 1.5 million bales to 90.88 million bales.

The dollar index was down 0.04% and the CRB index up 0.26%.

As of December 8, 2017, ICE Deliverable Cotton Futures 2 contract was 47,628 bales, unchanged from the previous trading day.

Total futures market volume decreased 8,587 lots to 23,432 lots. Data show that the previous day's holdings rose 1,688 hands to 253,097 hands.