REUTERS: Cotton futures rise on short covering, improved demand

REUTERS: Cotton futures rise on short covering, improved demand

June 4 (Reuters) -ICE cotton futures edged higher on Tuesday due to investor short covering and improved demand but remained at 19-month lows.

* Cotton contracts for July CTc1 rose 0.15 cent, or 0.21%, at 73.3 cents per lb by 12:29 p.m. ET (1629 GMT).

* "I think it's just speculative short covering," said Jack Scoville, vice president at Chicago-based Price Futures Group, adding that traders are getting out of short positions as demand has been holding reasonably well lately.

* Cotton futures fell for a fourth consecutive session to their lowest level in 19 months on Monday.

* There has been good growing conditions developing in Texas, so the planting conditions should be really good, which has been pressurising cotton prices, Scoville added.

* ICE cotton speculators trimmed net short position by 7,803 contracts to 20,416 in week to May 28 on Friday.

* In the grains market, Chicago corn futures edged lower on Tuesday to hold near a six-week low after a government report underscored a favourable start to the U.S. growing season.GRA/

* Traders' focus will now turn towards the U.S. Department of Agriculture's (USDA) weekly export sales report due on Thursday.

* The USDA, in a weekly crop progress report on Monday, said 61% of the cotton crop was in good-to-excellent condition.

Reporting by Anushree Mukherjee in Bengaluru; Editing by Ravi Prakash Kumar


Source: Reuters
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