REUTERS: Cotton prices down

REUTERS: Cotton prices down

NEW YORK: Cotton prices edged lower on Tuesday due to a stronger dollar ahead of the weekly exports sales report by the US Department of Agriculture (USDA).

The cotton contract for March was down 0.13 cent, or 0.2%, at 74.63 cents per lb by 12:29 p.m. EST (1729 GMT), after falling more than 3% on Monday.

It traded within a range of 74.28 and 75.22 cents per lb.

"We're waiting on exports tomorrow. The market is just sort of trying to consolidate its situation right now. We're also seeing a little bit of profit taking," said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia.

A rise in the US dollar is also impacting prices, he added.

The dollar index rose 0.6% against its rivals, making the natural fibre more expensive for buyers of cotton in other currencies. Investors now await the weekly export sales report from USDA due on Wednesday.

Last week, USDA's weekly export sales report showed net sales of 402,900 running bales for 2020/2021, up 4% from the previous week and 44% from the prior four-week average.

Sentiment in the wider financial markets remained weak as lingering concerns over a new variant of COVID-19 in the United Kingdom weighed on risk appetite among investors.

Meanwhile, the US Congress on Monday approved an $892 billion fiscal stimulus following days of furious negotiation. President Donald trump is expected to sign it into law, keeping hopes of an economic recovery alive.

Total futures market volume fell by 22,742 to 14,615 lots.

Certificated cotton stocks deliverable as of Dec. 21 totalled 77,326 480-lb bales, down from 77,678 in the previous session.


Source: Reuters
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