Cotton holds steady near 3-month low as pause in dollar rally offsets weak demand
Nov 18 (Reuters) -ICE cotton futures steadied on Monday, hovering near a three-month low reached in the previous session, as a pause in the dollar's rally helped offset weak demand for the natural fiber.
* Cotton contracts for December CTZ4 was little changed at 66.86 cents per lb at 11:34 a.m. ET (1634 GMT). The contract hit a more than three-month low on Friday.
* "The main hurt has been from the demand side of the market, which has not been super strong," said Jack Scoville, vice president at Chicago-based Price Futures Group.
* The U.S. dollar .DXY fell 0.2% after rising 1.6% last week, making cotton more expensive for other currency holders. USD/
* "The dollar is down a little bit, and that's probably helping things out. The harvest is starting to wind down a little bit but there's less harvest selling than there has been," Scoville added.
* A weekly crop progress report from the U.S. Department of Agriculture (USDA) is expected later in the day.
* Last week's data indicated that 71% of the cotton crop had been harvested by the week ending Nov. 10, up from 63% the previous week ending Nov. 03.
* Limiting losses, oil prices rose on news on that output at Norway's giant Johan Sverdrup oilfield has been halted, adding to earlier gains stemming from escalation in the Russia-Ukraine war.
* Higher oil prices make cotton-substitute polyester more expensive. O/R
* In the grain market, Chicago soybeans fell as good weather for upcoming South American harvests and the strong dollar weighed. GRA/
Reporting by Sherin Elizabeth Varghese in Bengaluru
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