Cotton buoyed by gains in equities, grains
Cotton buoyed by gains in equities, grains

Cotton buoyed by gains in equities, grains

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ICE cotton futures gained on Monday as a rebound in the wider financial and grains markets outweighed any pressure from a rising U.S. dollar.

* Cotton contract for December (CTZ3) rose 0.68 cent, or 0.8%, to 87.83 cents per lb by 12:40 p.m EDT (1640 GMT).

* "There could be a little bit of recovering going on across the board in commodities with money flowing back into the side, so far the positive sentiment seems to be helping cotton," said Bailey Thomen, cotton risk management consultant with StoneX Group.

* Nasdaq and S&P 500 rose, while investors awaited more data this week to gauge the central bank's interest-rate path.

* "We continue to have very low supplies for the new crop coming in from the U.S. or what's expected from the U.S. is quite a bit lower than in previous years," Thomen added.

* The U.S. Department of Agriculture in its September World Agricultural Supply and Demand Estimates report forecast lower domestic and global production of the natural fiber for the 2023-24 crop year.

* Elsewhere, Chicago wheat rose on bargain-buying after a larger-than-expected U.S. wheat harvest was forecast and corn was pulled up by wheat.

* Meanwhile, the dollar index  jumped 0.6% after the U.S. government temporarily avoided a shutdown, making the natural fiber less appealing to overseas buyers.

* Speculators cut net long position by 4,239 contracts to 28,749 in week to Sept. 26, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.



Source: Reuters
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