REUTERS: ICE cotton steady as supply risks offset firmer dollar
REUTERS: ICE cotton steady as supply risks offset firmer dollar

REUTERS: ICE cotton steady as supply risks offset firmer dollar

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Sept 26 (Reuters) -ICE cotton futures held steady on Tuesday as support from lingering concerns over supply countered a stronger dollar and muted demand outlook.

* Cotton contract for December CTZ3 was little changed at 88.36 cents per lb by 12:44 p.m. EDT (1644 GMT).

* "There is speculative buying in anticipation that the USDA will lower the yield forecast and lower production estimates," said Jack Scoville, vice president at Chicago-based Price Futures Group.

* "But, there are also demand concerns. China's moved a lot of their buying down to Brazil. Hence, prices are stuck in a range."
* However, limiting gains in the natural fiber, the dollar index hit a 10-month high. A stronger greenback makes cotton more expensive for overseas buyers. USD/
* Oil prices edged higher as investors weighed demand concerns stemming from an uncertain economic outlook against expectations of tighter supply for the rest of this year. Higher oil prices make polyester, a cotton substitute, more expensive. O/R

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

* In the grain market, Chicago wheat extended gains, soybeans also held firm with support from a slower-than-expected U.S. harvest pace, while corn inched down. GRA/

Reporting by Sherin Elizabeth Varghese in Bengaluru
Editing by Mark Potter


Source: Reuters

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