Cotton falls on higher dollar, lackluster weekly sales report
Dec 12 (Reuters) -ICE cotton futures fell on Thursday, weighed down by a strong dollar and a federal weekly export sales report that highlighted less buying activity for the natural fiber.
* Cotton contracts for March CTc1 fell 0.1 cent, or 0.14%, at 70.05 cents per lb at 11:02 a.m. ET (1602 GMT).
* A poorer than expected export sales is kind of weighing on the market a bit today and a higher dollar is also adding a little bit of headwinds for cotton, said Bailey Thomen, cotton risk management consultant at StoneX Group.
* The U.S. dollar .DXY rose 0.2%, hitting two-week high and making greenback-priced cotton more expensive for buyers holding other currencies. USD/
* The United States Department of Agriculture's weekly export sales report showed net sales of upland totaling 153,000 running bales (RB) for 2024/2025 were down 10% from the previous week and 37% from the prior four-week average. EXP/COT
* The report further showed export sales of 137,400 RB, down 13% from the previous week but unchanged from the prior four-week average.
* "We also see a little bit of selling pressure coming in more from the technical trading aspect, from speculators who have seen resistance coming in near the highs which is around 70.56 cents," Thomen added.
* Elsewhere, Chicago wheat futures inched up on Thursday due to uncertainties over Russian export supply, despite large crop harvests in Argentina and Australia, corn futures eased from a 5-1/2-month high, while soybeans edged higher. GRA/
Reporting by Anmol Choubey in Bengaluru; Editing by Mohammed Safi Shamsi
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.
