Cotton futures drop as spec selling resumes, offsets mill buying
* December prices holding just above 2-year high
* China's cotton imports drop in June
NEW YORK, July 15 (Reuters) - ICE cotton slipped again on Tuesday, resuming the market's biggest rout in years as speculators resumed selling fiber amid concerns about growing oversupply and offsetting pockets of buying as mills chased bargains.
The benchmark December cotton contract on ICE Futures U.S. settled down 0.55 cent, or 0.8 percent, at 67.75 cents a lb. Volumes were lower than recent sessions.
Prices were just above the two-year low of 67.1 cents touched on Friday after the U.S. Department of Agriculture forecast another record surplus in the upcoming season that starts on Aug. 1, warning of falling demand and rising output.
The market also digested data from China that showed a 19-percent year-on-year drop in imports last month as the government continued to auction off its state reserves.
Even so, the plunging prices have triggered renewed interest from mills across the globe, traders said. INTL FCStone analyst Andy Ryan said he had heard of "robust" buying from Turkey to Southeast Asia.
"It's gotten so cheap, so fast," he said. (Reporting by Josephine Mason, editing by G Crosse)
- California passes 'yes-means-yes' campus sexual assault bill
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis |
- In town halls, U.S. lawmakers hear voter anger over illegal migrants |
- IBM launches Watson system for research, hopes for breakthroughs
- U.N. says 43 Golan peacekeepers seized by Syria militants, 81 trapped