Cotton at more than 3-week low as stronger dollar weighs
July 9 (Reuters) -Cotton prices fell for a fifth day on Tuesdayto their lowest in over three weeks as the dollar strengthened, while traders looked forward to a monthly federal demand-and-supply report due later in the week.
* Cotton contract for December CTZ4 fell 0.37 cent, or 0.5%, to 70.68 cents per lb at 11:44 a.m. EDT (1544 GMT).
* "Cotton is drifting lower and I wouldn't be surprised to see it test the 70 cents level in the next couple of days, ahead of the USDA report on Friday," said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.
* "We saw another deterioration in the US crop conditions yesterday and people may start talking about that and if we see a further deterioration next week that might spur some people to change positions and go from short to long," he added.
* The dollar .DXY gained about 0.2% making cotton expensive for foreign currency holders.
* Chicago wheat and corn futures were little changed on Tuesday after sharp declines on Monday, while soybeans hovered around their lowest levels since November 2020 as expectations of ample supplies from northern hemisphere harvests hung over the market. GRA/
* Oil prices slipped after Hurricane Beryl hit a key U.S. oil-producing hub in Texas and caused less damage than markets had expected, easing concerns over supply disruption.
* Lower oil prices make cotton-substitute polyester less expensive.
* Investors are now looking forward to the upcoming monthly World Agriculture Supply and Demand Estimates (WASDE) report from the U.S. Agriculture Department (USDA) due on Friday.
* In a weekly crop progress report on Monday, the USDA said 45% of the cotton crop was in good-to-excellent condition compared with 50% a week ago. US/COT
* Cotton speculators decreased their net short position by 7,848 contracts to 38,744 in the week to July 2. CFTC/
Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber
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