Cotton hits two-week peak on short-covering, weaker dollar
March 28 (Reuters) -ICE cotton futures jumped to their highest in two weeks on Tuesday, helped by a weaker dollar, while investors covered short positions as concerns over the banking crisis eased.
* Cotton contract for May CTK3 rose 2.7 cents, or about 3.4%, to 82.22 cents per lb by 1153 a.m. ET (1553 GMT). Prices touched 82.14 cents per lb earlier in the session, their highest since March 14.
* "The outside forces probably helped cotton but this is more a technical thing that the specs got too short and had to cover some of these shorts," said Peter Egli, director of risk management at British merchant Plexus Cotton. CFTC/
* Global stocks rose after a deal backed by the U.S. regulator for First Citizens BancShares to buy up Silicon Valley Bank helped alleviate some of the recent concerns about the health of the banking sector. MKTS/GLOB
* "The banking crisis for now seems to have calmed down," said Egli, adding that crude prices were up sharply. O/R
* Higher oil prices make polyester, a cotton substitute, more expensive.
* Supporting cotton prices further, the dollar index .DXY fell against a basket of currencies for a second straight day, making commodities less expensive for overseas buyers. USD/
* Traders are now awaiting Friday's annual U.S. Agriculture Department (USDA) planting intentions report.
* Analysts polled by Reuters ahead of the report on average expect 2023 cotton plantings at 11.212 million acres.
* Chicago soybean futures rose for a third consecutive session, while corn edged lower after touching a one-month high in the previous session on concerns over crops in Argentina and the United States. GRA/
Reporting by Rahul Paswan in Bengaluru; Editing by Shilpi Majumdar
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