REUTERS: Cotton gains on softer dollar, approaching storm Idalia

REUTERS: Cotton gains on softer dollar, approaching storm Idalia

Aug 30 (Reuters) -ICE cotton futures rose on Wednesday, helped by a weaker dollar and worries over supply due to the possible impact from Hurricane Idalia in key growing areas.

* The most-active December cotton contract CTZ3 rose 0.52 cent, or 0.6%, to 87.41 cents per lb at 10:38 a.m. EDT (14:38 GMT). It traded in the range of 86.86 to 87.78 cents a lb.

* "Certainly the hurricane coming on shore, although it's wobbled a little bit to the right of most of the cotton, we're still getting wind and rain on a lot of the Georgia crops," said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* Hurricane Idalia made landfall in Florida as an "extremely dangerous" Category 3 storm. Most of Florida's 21 million residents - and many in the adjacent states of Georgia and South Carolina - were under hurricane warnings and other storm-related advisories.

* The dollar =USD, meanwhile, fell 0.5% to a more than two-week low against its rivals, making cotton less expensive for other currency holders. US/

* Further helping cotton, oil prices extended gains after industry data showed a large draw in crude inventories in the U.S. O/R Higher oil prices make polyester, a cotton substitute, more expensive.

* Elsewhere, Chicago wheat prices inched higher on Wednesday, snapping a four-day run of declines after a survey showed a sharp fall in Canadian production that could curb global supplies. GRA/

* Investor focus now shifts to the U.S. Department of Agriculture's (USDA) weekly export sales report, due Thursday.

* "Last week sales weren't very good, but China bought most of the cotton and received most of the shipments... also, cotton prices are facing strong resistance near the key 90 cents level," Brown said.

Reporting by Brijesh Patel in Bengaluru; Editing by Pooja Desai


Source: Reuters
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