REUTERS: Cotton futures slip for fourth straight session to 19-month low

REUTERS: Cotton futures slip for fourth straight session to 19-month low

June 3 (Reuters) -ICE cotton futures fell for a fourth consecutive session to its lowest level in 19 months on Monday, pressured by technical selling and a downbeat oil market.

* Cotton contracts for July CTc1 fell 2.8 cents, or 3.68%, at 73.35 cents per lb by 12:43 p.m. ET (1643 GMT).

* The market is seeing further technical selling from the last week, said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago. "There hasn't been a whole lot of reason to buy this market, because it has been in a bearish trend."

*On the other hand, "if you have any weather scares, you’ll be right back to 80 cents and at some point during the summer, I’m sure you’ll see that," Marcus added.

* Oil prices edged lower on Monday as investors digested the complex deal brokered by producer group OPEC+ to extend various layers of output cuts, much of them into 2025. O/R

* Lower oil prices make cotton-substitute polyester less expensive.

* "A lot of the selling pressure is coming in from the speculative trading side, repositioning, even exiting contracts before the July 1 notice day starts to approach in a couple weeks," said Bailey Thomen, cotton risk management consultant at StoneX Group.

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

* Meanwhile, Chicago wheat rose on Monday after three sessions of declines, as worries over bad weather damaging Russian crops supported prices that hit 10-month highs last week. GRA/

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


Source: Reuters
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