XM does not provide services to residents of the United States of America.

Cotton up despite third straight weekly slump as positions roll

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>Cotton up despite third straight weekly slump as positions roll</title></head><body>

June 14 (Reuters) -Cotton futures edged up on Friday while investors rolled over their positions from the front-month contract, as the natural fibre was headed for its third consecutive weekly fall.

* Cotton contracts for December CTZ4 rose 0.45 cents, or 0.6%, to 72.24 cents per lb by 12:00 p.m. ET (1600 GMT).

* "I think it's a combination of the final bit of rollover in prices, both months are low enough that you're attracting sales for US cotton in both crop years," said Louis Barbera, partner and analyst at VLM Commodities.

* "Cotton is the worst performer of any commodity... so we're just getting a little bit of a reprieve on a market that's been beat down worse than anyone."

* A weekly U.S. Department of Agriculture (USDA) report showed export sales of 186,600 running bales (RB), up 19% from the last week. EXP/COT

* The primary destination for exports was top consumer China with 73,400 RB, the report added.

* "They (China) buy when it's cheap and right now, US cotton is very cheap," added Barbera, noting that "it'll be a slower grind down and all of it depends on how the US crop shapes out."

* In its June outlook, China's agriculture ministry had raised its forecast for cotton imports in the 2023/24 crop year by 200,000 tons, as per a government crop report.

* Extending support, Brent oil futures prices ticked higher and were on course for their best week in more than four months after projections for solid crude oil and fuel demand in 2024. O/R

* Higher oil prices make cotton-substitute polyester more expensive.

Reporting by Rahul Paswan in Bengaluru; Editing by Vijay Kishore


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.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.