REUTERS: Cotton rises as gains in wider markets buoy sentiment

REUTERS: Cotton rises as gains in wider markets buoy sentiment

April 22 (Reuters) -ICE cotton futures rose more than 1% on Monday as support from upbeat sentiment in oil, grains, and financial markets overshadowed pressure from a strong dollar.

* Cotton contracts for July CTc2 rose 1.05 cents, or 1.3%, to 82.07 cents per lb by 12:45 p.m. ET (1645 GMT).

* "After the blowdown from last week, we're having a little bit of recovery just on the fact that it got oversold," said Jack Scoville, vice president at Chicago-based Price Futures Group.

* Persisting dryness in parts of the U.S. Plains could also be of support to prices, Scoville said.

* U.S. crude futures returned to positive territory on Monday after falling on easing fears of a wider Mideast conflict. O/R

* Higher oil prices make cotton-substitute polyester more expensive.

* Chicago wheat also rose to hold near a two-week high as concerns over crop weather in the Northern Hemisphere encouraged short-covering, analysts and traders said. GRA/

* U.S. stocks rose after steep losses in the previous session as easing Middle East tensions buoyed risk appetite. .N

* However, the dollar index .DXY firmed, making cotton more expensive for overseas buyers.

* "As we're approaching delivery on the May contract on Wednesday, I think all the rolling and spreading and the pressure of exiting those long positions is over," said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

* The U.S. Department of Agriculture's (USDA) weekly export sales report last week showed net sales of 146,100 running bales for 2023/2024, up 79% from the previous week and 64% from the prior four-week average. EXP/COT

* The report also showed exports of 266,700 running bales, down 3% from the previous week and 24% from the prior four-week average.

Reporting by Anjana Anil in Bengaluru; Editing by Tasim Zahid


Source: Reuters
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