REUTERS: Cotton set for third monthly gain as supply concerns linger
REUTERS: Cotton set for third monthly gain as supply concerns linger

REUTERS: Cotton set for third monthly gain as supply concerns linger

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Aug 31 (Reuters) -ICE cotton futures edged higher on Thursday and were heading for their third straight monthly gain because of lingering concerns over the likely impact on crops, as storm Idalia passed through Florida and Georgia.

* The most-active December cotton contract CTZ3 rose 0.46 cent, or 0.5%, to 88.34 cents per lb at 10:58 a.m. EDT (1458 GMT). It traded in a range of 87.41 to 88.4 cents a lb.

* The contract was up 4% so far this month.

"The market is easing up and I think the damage from the hurricane was very little, but the U.S. has a short crop overall. Even just a slight decrease in quantity from the hurricane will worry traders," said Rogers Varner, president of Varner Brokerage, in Cleveland.

* "The exports and sales were neutral to slightly disappointing. The market in the next few days will test the 90 cents area, which has been a lid over the market since last September."

* Tropical Storm Idalia inundated the Carolinas with torrential rains on Thursday, threatening to trigger dangerous flash floods, while Florida's Gulf Coast began recovery efforts after the system tore through the region as a Category 3 hurricane.

* The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 61,400 running bales of cotton for 2023/2024 and exports of 214,100 running bale, primarily to China. EXP/COT

* Cotton production is lowered to 5.9 million metric tons for the 2023/24 marketing year on reduced planted area, the USDA said in a report on Wednesday, adding, "China's textile and apparel industry continues to face significant headwinds."

* China is one of the top consumers of U.S. cotton.

* Limiting gains on the day, the dollar =USD rose 0.5% against its rivals, making cotton more expensive for other currency holders. US/

Reporting by Brijesh Patel and Anjana Anil in Bengaluru; Editing by Pooja Desai


Source: Reuters

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