REUTERS: Cotton edges up to hit over four-month high
REUTERS: Cotton edges up to hit over four-month high

REUTERS: Cotton edges up to hit over four-month high

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Feb 6 (Reuters) -ICE cotton futures ticked up on Tuesday hitting their highest since late September, as cocoa futures soared to a record high, while support also spilled from oil market.

* Cotton contracts for March CTc1 rose 0.3 cents to 87.34 cents per lb by 10:53 a.m. ET (1553 GMT) after hitting their highest since Sept. 29 earlier in the session.

* "Cocoa, orange juice, sugar are trading sympathetic to those other markets," said Jon Marcus, president of Lakefront Futures and Options brokerage, in Chicago.

* "These markets have taken off to levels that we haven't seen in a very long time."

* London cocoa futures on ICE hit a record high for a sixth consecutive session, while robusta coffee and sugar prices gained. SOF/L

* Oil prices maintained an upward momentum as investors awaited the result of top U.S. diplomat Antony Blinken's efforts in the Middle East to halt the Gaza war and quell tensions in a major oil-producing region. O/R

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

* The U.S. dollar edged lower about 0.1% but still held close to its highest level in almost three months, making cotton a little less expensive for buyers overseas. USD/

* "I would be surprised if you closed higher today," Marcus added.

* Providing support, Chicago wheat and soybean edged higher adjusting positions ahead of key reports expected later this week. GRA/

Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber


Source: Reuters

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