REUTERS: Cotton prices retreat 1% on stronger dollar
REUTERS: Cotton prices retreat 1% on stronger dollar

REUTERS: Cotton prices retreat 1% on stronger dollar

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Oct 24 (Reuters) -ICE cotton futures slipped more than 1% on Tuesday on a firmer dollar, giving up some of the gains from the last session, while traders positioned for weekly export numbers later this week.

* Cotton contracts for December CTZ3 fell 1.11 cent, or 1.33%, at 82.62 cents per lb at 11:21 a.m. ET (1521 GMT). On Monday, prices rose to a one-week high.

* The U.S. dollar rose .DXY 0.7%, making the natural fiber less appealing to overseas buyers. USD/

* "We shot back up yesterday, but now we can't seem to entice any extra buying. Higher dollar is offseting support from a strong stock market," said Keith Brown, principal at cotton broker Keith Brown and Co in Georgia.

* U.S. stocks rose as a selloff in U.S. Treasuries eased, while earnings boosted optimism about corporate America's health in the face of slowing economy and higher inflation. .N

* The U.S. Agriculture Department (USDA) in a weekly crop progress report on Monday said 29% of the cotton crop was in good to excellent condition, compared with 30% last week.

* "Domestically, West Texas will see more precipitation over the near-term, while harvest conditions across the balance of The Belt remain mostly favorable," Louis Rose of Tennessee-based Rose Commodity Group wrote in a note.

* The USDA's weekly export sales report is due on Thursday. EXP/COT

* Elsewhere, Chicago soybean and corn futures fell for a third straight session to hit one-week lows, while wheat also eased which was partly curbed by a rebound in the dollar. GRA/

Reporting by Daksh Grover in Bengaluru; Editing by Shailesh Kuber


Source: Reuters

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