Cotton rises 1% on dollar weakness, demand hopes
Cotton rises 1% on dollar weakness, demand hopes

Cotton rises 1% on dollar weakness, demand hopes

A- A+

Feb 13 (Reuters)ICE cotton futures gained more than 1% on Monday, helped by a weaker U.S. dollar and growing demand prospects for the natural fiber from top consumer China.

* The cotton contract for May rose 1.04 cent, or 1.2%, to 86.31 cents per lb by 11:22 ET (1622 GMT).

* It traded in a range of 84.53 and 86.73 cents a lb.

* "Demand has seen a resurgence in cotton, mainly by China," although "there is some fear about Turkey and how that's going to affect performance," said Louis Barbera, partner and analyst at VLM Commodities Ltd.

* Last week, U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 262,800 running bales (RB) of cotton for 2022/2023, increases mainly from China and Turkey. EXP/COT

* "We're dealing with a market that's trying to break out of a range to the upside with a higher interest rate coming and a dollar that's stalling on a correction."

* The dollar slipped 0.2% against its rival after hitting a one-week high earlier, making it cheaper for overseas buyers to import U.S. cotton.

* Investor now await U.S. January consumer price data on Tuesday that could influence the Federal Reserve rate-hike plans.

* Chicago wheat and corn fell in a pullback after strong rises on Friday, as concerns eased about the future of Ukraine’s safe shipping channel for grain exports.

(Reporting by Rahul Paswan in Bengaluru;)

((RahulKumar.Paswan@thomsonreuters.com; If within U.S. +1 646 223 8780;;))


Source: Reuters

Tags

newsletter

Subscribe to our daily newsletter