Cotton subdued on firm dollar, focus on weekly export sales report
Nov 14 (Reuters) -ICE cotton futures edged lower on Thursday, hurt by a stronger U.S. dollar, while traders awaited a federal weekly export sales report for more cues on demand for the natural fiber.
* Cotton contracts for December CTZ4 fell 0.23 cent, or 0.33%, at 68.67cents per lb at 11:35 a.m. ET (1635 GMT).
* "The U.S. dollar seems to have hit a peak. We've had a little bit of a Trump euphoria rally in the stock market and in the dollar. Plus, we've seen some pretty good liquidation," said Keith Brown, principal at cotton broker Keith Brown and Co in Georgia.
* The U.S. dollar continued its relentless march higher, trading at a one-year high against major peers, making greenback-priced cotton more expensive for traders holding other currencies. USD/
* Limiting the downside, Brown said "the U.S. harvest is about two-thirds complete, so we're seeing less hedge pressure."
* Chicago wheat futures fell for a fourth day to trade near a 2-1/2-month low as the U.S. dollar's continuing rally weighed on export sentiment, while improving crop prospects in some major producing countries added supply pressure.
* Corn and soybean futures were little changed after a three-day drop. GRA/
* Oil prices rose about 1%, paring some of the sharp declines seen earlier this week due to a stronger U.S. dollar and worries about rising supply amid slow demand growth. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
* Investors are awaiting the weekly export sales report from the United States Department of Agriculture on Friday, a day later than usual due to the Veterans Day holiday.
Reporting by Anjana Anil and Sherin Elizabeth Varghese in Bengaluru; Editing by Shreya Biswas
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