Cotton rises off four-week low on bargain hunting

Cotton futures rose on Monday for their biggest one-day gain in two weeks, as investors stepped in to pick up bargains after prices hit four-week lows last week and spurred by a broader gains across commodities. Prices were under pressure last week, testing critical support around 60 cents after the US Department of Agriculture last week forecast a bigger oversupply in the upcoming season. 

"The old crop July contract is fighting to hold that level," said Mississippi State University Professor Emeritus O.A. Cleveland in a research note. "Until the crop is in look for the trading range to be between 58 and 63 cents." Cotton contracts for July settled up 0.37 cent, or 0.61 percent, at 60.99 cents per lb. It traded within a range of 60.62 and 61.52 cents a lb. 

Certificated cotton stocks deliverable as of May 13 totalled 81,300 480-lb bales, up from 74,625 in the previous session. The dollar index was down 0.02 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 1.12 percent. Specs cut net long position to 24,306 from 30,397 in the latest week as prices sank ahead of the US Department of Agriculture's monthly crop report.