Cotton extends decline on lower grains, strong dollar
Dec 18 (Reuters) -ICE cotton futures extended its decline from the previous session on Wednesday, dragged down by the lower Chicago grains market, while a strong U.S. dollar also pressured the natural fiber.
* Cotton contracts for March CTc1 fell 0.36 cent, or 0.52%, at 68.33 cents per lb at 11:16 a.m. ET (1616 GMT), its lowest level since Nov. 21.
* "The soybean market is really weak and it just seems like cotton is following soybeans more than anything else.. it's (dollar) up a little bit so that would be a little bit negative for cotton," said Rogers Varner, president of Varner Brokerage.
* Chicago soybean futures are nearing a four-year low due to abundant crop prospects in Brazil and a slide in soyoil prices, while wheat prices steadied after a four-day drop, and corn consolidated in anticipation of a U.S. Federal Reserve interest rate announcement. GRA/
* The U.S. dollar .DXY rose 0.2%, making greenback-priced cotton more expensive for buyers holding other currencies. USD/
* Elsewhere, Wall Street's main indexes were subdued in choppy trading on Wednesday, as investors anticipated an interest rate cut from the Federal Reserve in its final meeting of the year and awaited clues on what policymakers could do in 2025. .N
Reporting by Anmol Choubey in Bengaluru; Editing by Vijay Kishore
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