Cotton recoups losses on technical buying, oil market lends support
April 19 (Reuters) -ICE cotton futures recovered on Friday after dipping to an over four-month low in the previous session, helped by technical buying and a downbeat oil market.
* Cotton contracts for May CTc1 rose 0.72 cent, or 0.9%, to 78.82 cents per lb by 12:25 p.m. ET (1625 GMT).
* "It's Friday and the market is supremely oversold. We were down some points since last Friday, so the move is certainly needed and permissible...I think this is a small technical move," said Keith Brown, principal at cotton broker Keith Brown and Co. in Georgia.
* However, "the dollar is still strong. We still have high interest rates generally speaking, cotton demand is not that not that robust," which could dampen prices, Brown added.
* The dollar index .DXY was up nearly 0.1%, making cotton more expensive for overseas buyers.
* The U.S. Department of Agriculture's (USDA) weekly export sales report on Thutrsday showed net sales of 146,100 running bales for 2023/2024, up 79% from the previous week and 64% from the prior four-week average. EXP/COT
* The report also showed exports of 266,700 running bales, down 3% from the previous week and 24% from the prior four-week average.
* Oil steadied after an earlier price spike of more than $3 a barrel after Iran played down a reported Israeli attacks on its soil, in a sign that an escalation of hostilities in the Middle East might be avoided. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
Reporting by Anjana Anil in Bengaluru; Editing by Ravi Prakash Kumar
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