Cotton falls to one-week low on stronger dollar, wider market jitters
July 19 (Reuters) -ICE cotton futures eased to a one-weeklow on Friday as the dollar strengthened, while downbeat sentiment in the oil, grains and financial markets added to the pressure.
* Cotton contracts for December CTZ4 fell 0.99 cent, or 1.38%, to70.94 cents per lb at 16:05 GMT, its lowest level since July 12. The contract was also headed for a weekly decline.
* The dollar index .DXY was up 0.1% against its rivals, making cotton more expensive for overseas buyers. USD/
* The stock market being down was also pressurizing the fiber,said Keith Brown, principal at cotton broker Keith Brown and Co in Georgia, adding speculators are heavily short on it.
* Wall Street indexes declined to deepen a sell-off driven by tech stocks and mixed earnings..N
* Oil slipped, headingfor its second straight weekly loss, and madecotton-substitute polyester less expensive. O/R
* Chicago corn and soybean futures rose,but hoverednear their lowest levels since 2020 and headedfor weekly losses due to favorable crop weather in the United States and expectations of plentiful supply. GRA/
* The U.S. Department of Agriculture showed export sales of 113,100 running bales (RB) were down 30% from the previous week and 33% from the prior 4-week average. EXP/COT
* The report also showed net sales of Upland cotton totaling 27,200 RB for 2023/2024, a marketing-year low, were down 50% from the previous week.
Reporting by Anushree Mukherjee and Anmol Choubey in Bengaluru; Editing by Shreya Biswas
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