Cotton at near two-week high ahead of WASDE report
Aug 12 (Reuters) -ICE cotton futures rose to its highest level in nearly two weeks on Monday as investors squared short positions in the run-up to a federal monthly supply-demand report from the U.S. Department of Agriculture (USDA).
* Cotton contracts for December CTZ4 rose 0.66 cent, or 0.97%, at 69 cents per lb at 10:49 a.m. EDT (1449 GMT), having hit its highest level since Aug. 1, earlier in the session.
* "I think people are covering up before the report comes out... The weather is pretty hot and pretty extreme out in Texas, so that's probably a supportive factor as well," said Jack Scoville, vice president at Chicago-based Price Futures Group.
* Focus will be the USDA World Agricultural Supply and Demand Estimates (WASDE) report due at 12:00 p.m. EDT.
* Cotton speculators increased their net short position by 2,526 contracts to 54,942 in the week to Aug. 6.
* Meanwhile, the dollar =USD edged 0.1% lower against its rivals, making cotton less expensive for other currency holders. USD/
* Oil prices rose for a fifth consecutive session on Monday, extending gains from the previous week's more than 3% rise, as U.S. recession fears eased and Middle East supply risks provided support. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
* Elsewhere, Chicago soybeans and corn futures fell on Monday to four-year lows below those hit the previous week, dropping below $10 and $4 a bushel respectively ahead of a U.S. government report expected to forecast bigger U.S crops. GRA/
Reporting by Anmol Choubey in Bengaluru; Editing by Vijay Kishore
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