REUTERS: Cotton ticks up on contract roll, firm oil prices
REUTERS: Cotton ticks up on contract roll, firm oil prices

REUTERS: Cotton ticks up on contract roll, firm oil prices

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Feb 13 (Reuters) -ICE cotton futures edged higher on Tuesday, aided by support from contract roll-over and firmer oil prices, while a stronger dollar capped further upside for the natural fibre.

* Cotton contracts for May CTc2 rose 0.6 cent, or 0.7%, to 91.9 cents per lb by 10:49 a.m. ET (1549 GMT).

* "The market is rebounding as we are seeing a little bit of new positions being taken. We're continuing to be in this roll over period where there's a lot of readjustments and repositioning, especially out of the March contract," said Bailey Thomen, cotton risk management consultant at StoneX Group.

* Oil prices edged up as uncertainty over fighting in the Middle East kept markets on edge. Higher oil prices make polyester, a cotton substitute, more expensive. O/R

* Capping gains for cotton, the dollar index .DXY firmed 0.6%, making the commodity less cheaper for overseas buyers. USD/

* Traders' attention turns to the U.S. Department of Agriculture's (USDA) weekly export sales data due on Thursday.

* "Next week's (export sales) report, would be a little lighter with the Chinese New Year holiday. But, we do expect that the strong sales and shipments will likely continue, especially to cover those sales that have already been put on the books," Thomen added.

* Last week's report showed net sales of 284,100 running bales for 2023/2024 and exports of 248,500 running bales for period ending Feb. 1. EXP/COT

* Elsewhere, Chicago soybean and corn futures were little changed near three-year lows as expectations of ample supplies hung over the market and investors awaited data on U.S. inflation and crop planting. GRA/

Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shilpi Majumdar


Source: Reuters

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