US cotton retreats on firm dollar, weak demand
April 2 (Reuters) -ICE cotton futures edged lower on Tuesday, hurt by a strong dollar and lacklustre demand, while downbeat sentiment across grains and equity markets also weighed on the natural fiber.
* Cotton contract for May CTc1 fell 1.3 cents, or 1.5%, to 91.37 cents per lb by 12:25 p.m. ET (1625 GMT).
* The dollar traded near a more than a four-month-high, making cotton less attractive, especially for overseas buyers. USD/
* "It looks like the old crop - that would be the May and July contracts, reached an area where there's little demand," said Rogers Varner, president of Varner Brokerage, in Cleveland.
* Further dampening demand, Brazil and Australia are "having wonderful production years... so it's very normal for China to switch its buying to those two countries," Varner added.
* Pressuring cotton, Chicago wheat futures edged down on expectations of ample supply, while U.S. stock indexes also fell on the possibility of fewer interest rate cuts than expected.GRA/.N
* Meanwhile, traders are awaiting Thursday's United States Agriculture Department's (USDA) weekly export sales report.
* Last week's USDA's weekly export sales report showed net sales of 98,200 running bales (RB) for 2023/2024, up 8% from the previous week and 46% from the prior 4-week average. EXP/COT
* Putting a floor under prices, Global oil benchmark Brent prices stayed high as supplies faced fresh threats from escalating conflict in the Middle East. Higher oil prices make cotton-substitute polyester more expensive. O/R
Reporting by Anjana Anil in Bengaluru; Editing by Tasim Zahid
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.
