By Josephine Mason
NEW YORK, July 3 (Reuters) - Cotton futures rose on Monday
for the fourth day, although it gained less than other
commodities due to concerns about a global surplus of the fiber.
Benchmark December cotton on ICE Futures U.S. rose
0.8 percent to settle at 72.60 cents per lb, holding the
two-week highs hit the previous day. Trading volumes were lower
on the eve of the U.S. Independence Day holiday.
Cotton prices got a boost from grains, which surged due to
fears that relentless heat would damage crops. Soybean prices
jumped to their highest levels since 2008.
Cotton has underperformed the broader commodities market due
to concerns about a global oversupply. The 19-commodity Thomson
Reuters-Jefferies CRB index gained more than 2 percent to
a six-week high on Tuesday, boosted by a stronger euro and
short-covering.
The blazing heat and drought stretching across the U.S. Corn
Belt have not affected cotton-growing areas, although traders
said they are hoping for rainfall in key-growing areas of
Tennessee, Mississippi and Louisiana soon.
"In the mid-south, we've been without rain for three weeks.
There's a concern, although it's not yet critical. If there's
still no rain this time next week, cotton will start moving up,"
said a major U.S. trader.
Cotton is hardier than grains and can survive on less water.
In contrast to the United States, rains in North East China
and India, other major growing regions, are expected to help
crops, which has raised concerns about oversupply, he said.