REUTERS: Cotton hits near two-week low on robust dollar, lower equities
REUTERS: Cotton hits near two-week low on robust dollar, lower equities

REUTERS: Cotton hits near two-week low on robust dollar, lower equities

A- A+

Sept 21 (Reuters) -ICE cotton futures fell to a near two-week low on Thursday, weighed down by a jump in the U.S. dollar, while a downbeat sentiment in the equities also seeped into the natural fiber.

* Cotton contracts for December CTZ3 fell 0.9 cent, or 1.04%, to 85.96 cents per lb by 12:37 p.m EDT (16:37 GMT), after dropping to its lowest since September 8 at 85.88 cents per lb earlier in the session.

* "The dollar has made a six-month high and that is the major catalyst," said Rogers Varner, president of Varner Brokerage, in Cleveland, adding that export sales today was a little better than the recent weeks but not good enough to help the market.

* The dollar jumped after the U.S. Federal Reserve signalled policy would remain restrictive for longer, making cotton more expensive for holders of other currencies. USD/

* The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 105,800 running bales of cotton for 2023/2024, up 57% from the previous week. The report showed exports of 150,700 running bales, primarily to China. EXP/COT

* Nasdaq led declines in key Wall Street indexes as a jump in Treasury yields knocked down growth stocks. .N

* Chicago corn, soybeans and wheat were lower, curbed by a sharp rise in the dollar and ample short-term supplies in international grain markets. GRA/

Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shweta Agarwal



Source: Reuters

Tags

newsletter

Subscribe to our daily newsletter