Reuters: ICE cotton prices scale six-week peak on supply concerns
Reuters: ICE cotton prices scale six-week peak on supply concerns

Reuters: ICE cotton prices scale six-week peak on supply concerns

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July 20 (Reuters) -ICE cotton futures rose to a more than six-week high on Thursday on growing supply worries due to hot and dry weather in top growing regions, although an uptick in the dollar kept gains in check.

* The most-active December cotton contract CTZ3 rose 0.49 cents to 84.24 cents per lb by 12:14 p.m. EDT (1614 GMT), after hitting its highest since June 6at 84.90 cents earlier in the session.

* The dollar =USD rose 0.5% against its rivals, making cotton more expensive for other currency. USD/

* Cotton is up on "the fact that the northern hemisphere crop is going backwards and they've got hot and dry weather," said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.

* Countries around the world from China to the United States are battling heatwaves, with the onset of the climate phenomenon El Nino helping push temperatures higher.

* The U.S. Department of Agriculture's (USDA) report showed net sales of 67,100 running bales (RB) of cotton for 2022/2023, up noticeably from the previous week but down 11% from the prior four-week average. EXP/COT

* The primary buyers were China at 32,400 RB and Vietnam at 16,000 RB.

* "They (export sales report) weren't super bullish or super bearish. China was the main feature in that report, so that helps a little bit and I think the market is starting to wake up," Brown said.

* Exports of 233,100 RB were up 12% from the previous week, but unchanged from the prior four-week average, according to the USDA's report.

* Lending support to the natural fibre, wheat futures edged higher as a third night of Russian attacks on Ukrainian ports renewed concerns about disruptions to exports. GRA/

* Oil prices also rose making polyester, a cotton substitute, more expensive. O/R

Reporting by Rahul Paswan in Bengaluru; Editing by Maju Samuel


Source: Reuters

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