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Cotton hits 3-1/2 yr low on strong dollar, favourable weather outlook

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June 17 (Reuters) -ICE cotton futures slid nearly 3% to a more than 3-1/2 year low on Monday, pressured by a stronger U.S. dollar and expectations of good weather boosting supplies in the key growing region.

* Cotton contracts for December CTZ4 fell 0.87 cents, or 1.2%, to 71.27 cents per lb by 11:49 p.m. ET (1549 GMT), after hitting its lowest since November 2020 at 70 cents earlier in the session.

* The dollar =USD rose for the third straight session to hover near more than one-month high hit in the last session, making cotton more expensive for overseas buyers. USD/

* Cotton is pressured by a bunch of factors such as stronger dollar, good weather and the first notice day being only five days away, said Rogers Varner, president of Varner Brokerage in Cleveland.

* "Cotton has a history of going down as notice day approaches so my guess is that we're not going to see any recovery in the market until we get notice day behind us."

* Pressuring the natural fibre, Chicago wheat fell 3% to its lowest in about six weeks while corn and soybeans also fell. GRA/

* Wall Street's main indexes edged lower as investors awaited fresh economic data and comments from Federal Reserve officials throughout the week for more clarity on monetary policy. .N

* Meanwhile, cotton speculators increased the net short position by 10,885 contracts to 43,248 in the week to June 11.

Reporting by Rahul Paswan in Bengaluru; Editing by Alan Barona


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