Cotton eases as higher dollar, lower grains weigh on prices
Oct 17 (Reuters) -ICE cotton futures eased on Thursday, dragged down by a strong U.S. dollar, while a retreat in the grains market also weighed on the natural fiber.
* Cotton contracts for December CTZ4 fell 0.19 cent, or 0.3%, at 71.07 cents per lb at 12:05 p.m. ET (1605 GMT).
* "The dollar's been strong. So that has had a little bit of an effect (on cotton),"said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago.
* The dollar jumped to an 11-week high after data showed that U.S. retail sales increased slightly more than expected in September, making cotton more expensive for holders of other currencies. USD/
* A lot of commodities are being sold during the week, especially in the agricultural markets; it could be because of harvest pressure. This probably took an effect on cotton, Marcus added.
* The U.S. cotton crop is around 30% harvested. Traders await the United State Department of Agriculture's weekly export sales data on Friday.
* Chicago corn fell on strong U.S. harvest and better planting weather in South America. Soybean futures hit a seven-week low due to supply pressures, while wheat fell as rain in Russian winter wheat regions eased crop concerns. GRA/
* Meanwhile, oil prices were broadly flat as investors waited on developments in the Middle East and details on China's stimulus plans. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
Reporting by Anjana Anil in Bengaluru; Editing by Shreya Biswas
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