REUTERS: US cotton steadies after softer export data
REUTERS: US cotton steadies after softer export data

REUTERS: US cotton steadies after softer export data

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Jan 25 (Reuters) -ICE cotton futures held steady on Thursday, easing from a fresh three-month peak after a federal report printed a slower weekly exports figure, while an upbeat stock market lifted sentiment.

* Cotton contracts for March CTc1 rose 0.05 cent, or 0.1%, to 85.45 cents per lb by 12:15 p.m. ET (1715 GMT) after hitting its highest level since Oct. 16 at 85.75 cents a lb earlier.

* The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 207,000 running bales for 2023/2024, down 51% from the previous week, with nearly half the sales headed for top consumer China. EXP/COT

* "In a week or three, China's going to be pretty quiet too. ... This is a nice rally and a good opportunity to sell this market," said Jon Marcus, president of Lakefront Futures and Options brokerage, in Chicago.

* USDA's report also said weekly exports of 142,200 bales were down 45% from the previous week, after having stayed above 200,000 bales in the last five reports and setting a new marketing-year record last week.

* "That's probably going to weigh on the minds of anybody who's long or wants to be long," Marcus said, expecting prices to trade in a wide range between 87 cents and 82 cents a lb.

* The dollar also firmed 0.3%, making U.S. cotton more expensive for overseas buyers. USD/

* But the natural fiber also absorbed some of the upbeat sentiment on Wall Street, where the main indexes gained after data reflecting strong economic performance in the fourth quarter boosted hopes of a soft landing. .N

* In the grains market, Chicago corn, soybean, and wheat futures were little changed, consolidating near two-week highs as participants assessed South American crop weather and awaited U.S. export data and macroeconomic news for further direction. GRA/

Reporting by Deep Vakil in Bengaluru; Editing by Shweta Agarwal


Source: Reuters

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