Cotton futures falls on technical resistance, weekly sales report in focus
Dec 3 (Reuters) -ICE cotton futures fell for the second consecutive session on Tuesday due to technical resistance, while traders awaited an export sales report this week to gauge demand.
* Cotton contracts for March CTc2 fell 0.08 cent, or 0.11%, at 71.41 cents per lb as of 11:29 a.m. ET (1629 GMT).
* "I think really the failure to breakthrough resistance at 72.06 cents in the last couple of sessions is the main reason why it's trading lower today. So just a little bit of a technical reaction more than anything else," said Bailey Thomen, cotton risk management consultant at StoneX Group.
* Cotton prices are trading below the 50-and-200-day moving averages. The chart-based traders who operate on technicals see this as a bearish signal.
* Traders now await the weekly export sales report from the U.S. Department of Agriculture (USDA) due Thursday.
* While demand is somewhat stable and has shown slight improvement after recent market downturns, it remains relatively weak, with little noticeable contribution from China, Thomen added.
* Meanwhile, Wall Street's main indexes were subdued in choppy trading on Tuesday after the S&P 500 and the Nasdaq notched record high levels in the last session..N
* Cotton speculators trimmed their net short position by 15,285 contracts to 36,410 in the week to Nov. 26.
* Elsewhere, Chicago soybeans rose on Bargain-buying, while an expected record crop in Brazil capped gains. Meanwhile, wheat and corn rebounded from previous losses.
Reporting by Anmol Choubey in Bengaluru; Editing by Tasim Zahid
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