Cotton consolidates after sliding on weaker export sales data
Feb 26 (Reuters) -U.S. cotton futures rose on Monday as the dollar eased, regaining some ground after a 1% fall in the previous session driven by lower weekly exports of the natural fiber.
* Cotton contract for May CTc2 firmed 0.56 cent, or about 0.6%, at 94.05 cents per lb by 11:23 a.m. ET (1623 GMT).
* The dollar eased 0.1%, making the commodity less expensive for overseas buyers. USD/
* The cotton market is currently seeing a consolidation move after last week's weaker export sales report, Bailey Thomen, cotton risk management consultant at StoneX Group, said, adding that "we could see a technical breakout in the near future".
* Prices fell on Friday after the U.S. Department of Agriculture in its weekly export sales report showed exports of 255,500 running bales, down 8% from the previous week, while net sales of 130,500 running bales for 2023/2024 were down 19% from the previous week and 48% from the prior four-week average. EXP/COTN
* There is a trade-off between old crop and new crop where the U.S. supply situation is pretty tight for the remainder of the marketing year but "we are expecting to see much larger planted area this upcoming season", Thomen added.
* Speculators raised net long position by 10,214 contracts to 67,851 contracts in ICE U.S. cotton futures in the week of Feb. 20, the Commodity Futures Trading Commission said on Friday.
* In the grains market, Chicago corn, wheat and soybeans fell, giving up early gains as focus returned to large world supplies and expectations of bumper South American harvests, which last week pushed corn to its lowest in around three years.GRA/
Reporting by Anushree Mukherjee in Bengaluru; Editing by Shilpi Majumdar
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