REUTERS: ICE cotton rises over 3% on softer dollar, broader market strength

REUTERS: ICE cotton rises over 3% on softer dollar, broader market strength

July 11 (Reuters) -ICE cotton futures jumped more than 3% on Tuesday, propelled up by a weaker dollar and upbeat sentiment in wider financial and commodity markets as investors looked forward to a federal monthly supply and demand report.

* The most-active December cotton contract CTz3 rose 2.7 cent, or 3.4%, at 81.95 cents per lb by 10:53 a.m. EDT (1453 GMT). It traded in a range of 79.27 and 82 cents a lb.

* The dollar index .DXY lost about 0.1%, making the natural fiber more attractive for overseas buyers.

* Equity market has opened higher today, also, the grain market seems up, so we can say that it is helping cotton prices to some extent, said Jack Scoville, vice president at Chicago-based Price Futures Group.

* The Dow and the S&P 500 rose ahead of inflation data, as investors were hopeful that a slowdown in price increases could support a sooner-than-expected end to the Federal Reserve's policy of rapid monetary tightening. .N

* Chicago soybean futures rose for a second session as rain gave only a modest boost to Midwest crops, adding to expectations that the U.S. government will reduce its harvest forecast. GRA/

* Oil prices edged higher supported by supply cuts by the world's biggest oil exporters and hopes for higher demand in the developing world in the second half of 2023 despite a sluggish economic outlook.O/R

* Higher oil prices make polyester, a cotton substitute, more expensive.

* "We have the WASDE report due tomorrow and there is going to be some projections for somewhat lower yields and lower production, which again is helping the prices today," Scoville added.

* The U.S. Department of Agriculture's World Agricultural Supply and Demand Estimates (WASDE) report is due at 12:00 p.m. ET on Wednesday.

Reporting by Ananya Bajpai in Bengaluru; Editing by Maju Samuel


Source: Reuters
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