Cotton slips on dollar strength, weakness in wider commodity markets
Nov 11 (Reuters) -ICE cotton futures fell on Monday, after the U.S. dollar rose to a multi-month high, while downbeat sentiment in the oil and wheat markets also weighed on the natural fiber.
* Cotton contract for December CTZ4 fell 0.74 cent, or 1.04%, to 70.24 cents per lb at 10:57 a.m. ET (1557 GMT).
* The stronger dollar "gives day traders and short-term traders something to go for, and so the breakout in the dollar, its highest level since July, that makes everything more expensive for exports", said Rogers Varner, president of Varner Brokerage, in Cleveland.
* The dollar index =USD was 0.6% firmer at 105.59, after hitting its highest since July. A stronger greenback makes cotton less appealing for buyers holding other currencies. USD/
* "Cotton is following somewhat downward moves in the Chicago grain markets, and also copper and the other metals are down. As is crude, so it looks like this is one of these negative days for commodities in general," Varner said.
* Chicago wheat fell sharply following forecasts of welcome rain in U.S. grain belts. GRA/
* Oil prices fell about 2% after China's stimulus plan disappointed investors seeking fuel demand growth in the world's No. 2 oil consumer and as the U.S. dollar edged higher. O/R
* Lower oil prices make cotton-substitute polyester less expensive.
* In its November World Agriculture Supply and Demand Estimates report on Friday, the United States Department of Agriculture lowered U.S. exports by 200,000 bales to 11.3 million, citing weaker global import demand and lower consumption for 2024/25.
* Wall Street's main indexes hit record highs as optimism on proposed tax cuts and expectations of an easier regulatory environment after Donald Trump won the U.S. presidency continued to lift stocks. .N
Reporting by Anjana Anil in Bengaluru; Editing by Shilpi Majumdar
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