Cotton futures hovered on Tuesday as early gains during the session were tempered, according to Reuters.
Following a post-Memorial-Day-boost on Tuesday morning, the soft fiber lost momentum and dropped 1.1 percent of its value, roughly 0.82 cents, to hover between 72.45 cents and 75.33 cents. Tuesday's range was higher than the 71.51 cent value seen last Wednesday {unclear}, the lowest price in more than two years.
"It was time for a little technical bounce," independent analyst Mike Stevens told Reuters regarding cotton's movement early in the session. "The market's ripe for (some) short-covering."
At 2:35 p.m. on Tuesday, cotton futures fell 1.11 percent, a 0.82 loss to 72.8 cents per pound.
The record price for cotton futures is $2.197 per pound as established in early March of 2011.
Should an impasse between cotton farmers and merchants in Zimbabwe continue, the government might step forward and purchase the soft fiber directly from farmers, fibre2fashion.com reports. Agriculture Minister Joseph Made disclosed that intention per the advice of the nation's cabinet as to how to address the issue.
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