REUTERS: Cotton firms on softer dollar, support from financial markets
REUTERS: Cotton firms on softer dollar, support from financial markets

REUTERS: Cotton firms on softer dollar, support from financial markets

A- A+

April 29 (Reuters) -ICE cotton futures rose on Monday buoyed by positive sentiment in the wider financial markets, while a weaker U.S. dollar also lent support to the natural fiber.

* Cotton contracts for July CTc2 rose 0.7 cent, or 0.8%, to 81.61 cents per lb by 11:37 a.m. ET (1537 GMT).

* "The strength of the yen no doubt is helping prices in the in the Orient, that's positive... the stock market's up and the dollar is weaker," which is supporting the market, said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.

* "If we could somehow get this market to go back and test and hold the 83 cent level, that may spur some short covering," Nunn added.

* Wall Street's main indexes crept higher in volatile trading as shares of Tesla and Apple advanced while investors exercised caution ahead of the Federal Reserve's interest rate decision later in the week. .N

* Japan's currency surged as much as 5 yen against the dollar, with traders citing heavy yen-buying intervention by Japanese banks for the first time in 18 months. USD/

* Limiting some gains, oil prices fell by more than $1 a barrel as Israel-Hamas ceasefire talks in Cairo tempered fears of a wider Middle East conflict. O/R

* Lower oil prices make cotton-substitute polyester less expensive.

Reporting by Anjana Anil in Bengaluru; Editing by Shailesh Kuber


Source: Reuters

Tags

newsletter

Subscribe to our daily newsletter