Cotton extends decline on demand concerns, wider market jitters
Aug 27 (Reuters) -ICE cotton futures fell for the second consecutive session on Tuesday, pressured by demand concerns due to escalating U.S.-China tensions, while downbeat sentiment in the oil, grains and broader financial markets added to the pressure.
* Cotton contract for December CTZ4 fell 0.34 cent, or 0.48%, at 69.92 cents per lb at 11:40 a.m. EDT(1540 GMT).
* "There was little anxiety when the U.S. put sanctions on some Chinese companies, so China came out with an angry response that may have bent cotton a little bit lower today," said Keith Brown, principal at cotton broker Keith Brown and Co in Georgia.
* China called U.S. sanctions on its entities over the Ukraine war "illegal and unilateral" and "not based on facts" in comments on Tuesday ahead of White House National Security Adviser Jake Sullivan's arrival in Beijing for days of high-level talks.
* A gauge of global shares dropped along with oil prices on Tuesday as investors weighed geopolitical risks as well as impending Nvidia earnings and U.S. inflation data. O/RMKTS/GLOB
* Chicago Corn futures fell for the fourth day in a row due to expected record U.S. yield and old-crop sales. Abundant supply also drove down soybean and wheat prices, partly due to the Northern Hemisphere harvest and the Black Sea region.GRA/
* Significant flooding in India, Bangladesh, and China's northern plains due to heavy rainfall may also have an impact on cotton, said Brown, adding, "This week's export number will be interesting."
* In a weekly crop progress report on Monday, the U.S. Department of Agriculture said 40% of the cotton crop was in good-to-excellent condition, compared with 42% a week ago.
* The death toll from devastating floods caused by relentless monsoon rain and overflowing rivers in Bangladesh has risen to 23, with around 1.24 million families stranded across 11 districts, officials said on Monday.
Reporting by Anmol Choubey in Bengaluru; Editing by Tasim Zahid
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