Cotton slips on weaker export sales, firm dollar ahead of WASDE
April 11 (Reuters) -ICE cotton futures slipped on Thursday, weighed down by lower weekly export sales data and a stronger dollar ahead of a monthly federal demand and supply report.
* Cotton contract for May CTc1 fell 0.87 cents, or about 1%, to 84.44 cents per lb by 11:32 a.m. ET (1532 GMT), after dropping to its lowest level since early January earlier in the session.
* The dollar index .DXY rose about 0.2% jumping to its highest since mid-November against its rivals, making the natural fibre more expensive for overseas buyers.
* The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 81,500 running bales for 2023/2024, down 4% from the previous week, and 10% from the prior 4-week average. EXP/COT
* The report also showed exports of 274,100 running bales, down 25% from the previous week and 23% from the prior 4-week average.
* "The open interest has been falling and you know that's a sign that the specs are cashing out," said Peter Egli, director of risk management at British merchant Plexus Cotton.
* "Right now we're in the spec long liquidation phase and once we're in the low 80s, I think the market will stabilize."
* Market participants are now awaiting the release of the U.S. Department of Agriculture's (USDA) World Agriculture Supply and Demand Estimates (WASDE) report on Thursday.
Reporting by Rahul Paswan in Bengaluru; Editing by Vijay Kishore
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
