Cotton retreats on technical selling despite downbeat dollar
April 23 (Reuters) -ICE cotton futures dropped on Tuesday, despite weakness in the U.S. dollar, as prices of the natural fiber were hurt by a technical correction after it climbed more than 1% in the previous session.
* Cotton contracts for July CTc2 fell 0.9 cent, or 1.1%, to 81.44 cents per lb by 12:22 p.m. ET (1622 GMT).
* "We had a one- or two-day bounce and then I think people are coming in and selling," said Jon Marcus, president of Lakefront Futures and Options brokerage, in Chicago.
* The market will rise in earnest if there are planting issues or weather problems, Marcus said, adding that "the bottom line is the cotton market is probably trading from the short side right now".
* Oil prices slipped after a short-lived boost from stronger economic data out of Europe as the market weighed the potential fallout from any fresh U.S. sanctions against Iranian oil exports. O/R
* Lower oil prices make cotton-substitute polyester less expensive.
* Prices fell despite the dollar index .DXY dropping to its lowest in more than a week. USD/
* The U.S. Department of Agriculture's weekly export sales report last week 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.
Reporting by Anjana Anil in Bengaluru; Editing by Pooja Desai
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