REUTERS: Cotton futures fall for fourth straight session on muted demand
REUTERS: Cotton futures fall for fourth straight session on muted demand

REUTERS: Cotton futures fall for fourth straight session on muted demand

A- A+

March 5 (Reuters) -U.S. cotton futures fell for a fourth consecutive session on Tuesday on lower mill demand for the natural fiber, while the limelight shifted to the U.S. Department of Agriculture's World Supply and Demand Estimates report due later this week.

* Cotton contract for May CTc2 fell 0.1% to 94.48 cents per lb by 12:55 p.m. ET (1755 GMT).

* There is stifled demand due to high cotton prices as prices are above 90 cents, making it difficult for mills to buy, which is pressurising the market, said Rogers Varner, president of Varner Brokerage, in Cleveland.

* Certified cotton stocks, which can be delivered against the contract, were at 1,636 bales compared with 985 bales on Feb. 28, according to ICE data.

* There will likely be a slight decrease in supply and demand in the near term, with prices likely to remain volatile but will hold between 90-96 cents in the near term, Varner added.

* Oil prices eased and fell for a second straight session. Lower oil prices tend to subdue sentiment in cotton markets since they make polyester, a cotton substitute less expensive.O/R

* Market focus shifted to the U.S. Department of Agriculture's monthly World Supply and Demand Estimates (WASDE) report due on Friday.

* Last month's WASDE report showed lower ending stocks relative to last month, with higher exports and lower mill use, while production remained unchanged.

Reporting by Anushree Mukherjee in Bengaluru; Editing by Shweta Agarwal


Source: Reuters

Tags

newsletter

Subscribe to our daily newsletter