REUTERS: Cotton rises 1% as dollar eases, supply worries persist
REUTERS: Cotton rises 1% as dollar eases, supply worries persist

REUTERS: Cotton rises 1% as dollar eases, supply worries persist

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Sept 18 (Reuters) -ICE cotton futures rose more than 1% on Monday, as a slight retreat in the U.S. dollar and lingering concerns over supply helped the natural fiber to recoup some previous session losses.

* Cotton contract for December CTZ3 rose 0.94 cent, or 1.1%, to 87.38 cents per lb by 11:25 a.m. EDT (1525 GMT), after dropping 1.6% on Friday.

* "El Nino's coming," which would hurt agriculture worldwide and Australia would be little beneficial to us as they were getting ready to be a major exporter to China again, said Jack Scoville, vice president at Chicago-based Price Futures Group.

* Australia is bracing for a hotter southern hemisphere spring and summer this year after the possibility of an El Nino strengthened and the weather event was forecasted to likely develop between September and November.

* Buyers including a state-owned Chinese company are stockpiling Australian cotton in Chinese warehouses, betting that a three-year ban on imports will soon be lifted.

* China, one of the top consumer of U.S. cotton, sold 14,578.69 metric tons of cotton at state reserve auction on Sept. 18.

* "Cotton market has been trading sideways and I don't see any reason it's going to change here in the short term," Scoville added.

* The U.S. Department of Agriculture has flagged lower U.S. and global cotton output for 2023-24 in their latest supply-demand report.

* The dollar =USD, meanwhile, eased 0.1% against its rivals, making the natural fiber less expensive for other currency holders. USD/

* Speculators cut net long position by 7,180 contracts to 34,774 in the week to Sept. 12, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.

Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber


Source: Reuters

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