Cotton rises 3% on dollar slide, higher financial markets
Aug 19 (Reuters) -ICE cotton futures rose 3% on Monday, supported by lower U.S. dollar and upbeat sentiment in wider financial markets.
* Cotton contracts for December CTZ4 rose 1.92 cents, or 2.86%, at 69.16 cents per lb at 14:57 GMT.
* The U.S. dollar breaking of from monthly support probably that's pushing cotton higher, said Louis Barbera, partner and analyst at VLM Commodities.
* The U.S. dollar index .DXY fell 0.5% against its rivals, extending losses for the second straight session to hit its lowest level since Jan. 5, making cotton less expensive for overseas buyers. USD/
* Wall Street's main stock indexes extended their gains in choppy trading on Monday after clocking their best week of the year. .N
* "There's a rethinking of what the U.S. supply is going to look like next year, but unfortunately we're getting all indications that demand actually might be worse than stated," said Barbera, adding that the prices will remain between 65 and 73 cents for now.
* Chicago soybean and corn futures edged higher on Monday, recovering from their lowest in nearly four years as traders waited to see if a major field tour this week will support expectations of bumper U.S. yields. GRA/
* Cotton speculators increased their net short position by 1,429 contracts to 56,369 in the week to Aug. 13.
Reporting by Anmol Choubey in Bengaluru; editing by David Evans
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