ICE cotton futures extended gains on Tuesday, rising for the third straight session, after the U.S. Department of Agriculture's weekly export sales report indicated strong demand, with a weaker dollar adding support.
* Cotton contracts for March (CTH6) rose 0.2 cent, or 0.3%, at 64.2 cents per lb at 10:52 a.m. ET (or 15:52 GMT) after hitting its highest level since November 19 earlier in the session.
* The U.S. dollar slipped 0.3% compared to other fiat currencies, making greenback-priced cotton less expensive to purchase for overseas buyers.
* "We got sales for six weeks ago, they were slightly positive," said Rogers Varner, president of Varner Brokerage adding that a lower dollar is adding support.
* Earlier in the day, the USDA's weekly export sales report showed net sales of upland cotton for the week ended October 9 totaling 157,600 running bales (RB) for the current marketing year and the U.S. made 159,500 running bales of new sales.
* On Monday, the USDA's weekly crop progress report showed 79% of the cotton was planted in the week ended November 23, compared with 71% in the week before.
* "I think March (contract) will trade in upper $60s by New Year's," Varner said.
* Markets are now focused on the USDA's upcoming export sales report, scheduled for release on November 28. The data was delayed due to a 43-day U.S. government shutdown, the longest in the country's history, which ended on November 12.
* Elsewhere, Chicago soybean futures inched up after comments by U.S. President Donald Trump bolstered expectations of further Chinese purchases under a bilateral trade truce.
* However, gains were capped as lower crude oil prices made cotton-alternative polyster more affordable, potentially curbing demand for the natural fiber.
Source: Reuters