Cotton drops over 2% on firm dollar, WASDE report
Rewrites to add details from WASDE report and comment, updates prices
May 10 (Reuters) -ICE cotton futures fell more than 2% on Friday, weighed down by an overall stronger dollar and as a federal monthly supply and demand report failed to inspire sentiment among investors.
* Cotton contracts for July CTc1 fell 1.2 cents, or 1.5%, to 77.42 cents per lb by 12:40 p.m. ET (1640 GMT).
* "The market didn't have anything really bullish from the WASDE report, so it went down. The latest numbers indicate that the speculators aren't long. On a world basis, the production number was a little bit negative," Kansas-based commodity analyst Sid Love said.
* The dollar inched higher as investors digested a reading on U.S. consumer sentiment and sifted through a flurry of comments from Federal Reserve officials. USD/
* The U.S. 2023/24 cotton supply and demand projections were unchanged this month, with ending stocks forecast at 2.5 million bales, the USDA's World Agricultural Supply and Demand Estimates (WASDE) report showed.
* The market is "down early, but I don't think we'll stay down all day. 75 cent cotton may be too low and 85-90 cent maybe too high so it's gonna just drift along here, Love said, adding that "we're gonna have to see how it goes with the weather as well".
* Oil prices wavered between positive and negative territory in a narrow trading range as investors grappled with conflicting demand signals out of China and the U.S. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
Reporting by Anjana Anil in Bengaluru; Editing by Shounak Dasgupta and Krishna Chandra Eluri
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