Cotton futures rise on short covering, improved demand
June 4 (Reuters) -ICE cotton futures edged higher on Tuesday due to investor short covering and improved demand but remained at 19-month lows.
* Cotton contracts for July CTc1 rose 0.15 cent, or 0.21%, at 73.3 cents per lb by 12:29 p.m. ET (1629 GMT).
* "I think it's just speculative short covering," said Jack Scoville, vice president at Chicago-based Price Futures Group, adding that traders are getting out of short positions as demand has been holding reasonably well lately.
* Cotton futures fell for a fourth consecutive session to their lowest level in 19 months on Monday.
* There has been good growing conditions developing in Texas, so the planting conditions should be really good, which has been pressurising cotton prices, Scoville added.
* ICE cotton speculators trimmed net short position by 7,803 contracts to 20,416 in week to May 28 on Friday.
* In the grains market, Chicago corn futures edged lower on Tuesday to hold near a six-week low after a government report underscored a favourable start to the U.S. growing season.GRA/
* Traders' focus will now turn towards the U.S. Department of Agriculture's (USDA) weekly export sales report due on Thursday.
* The USDA, in a weekly crop progress report on Monday, said 61% of the cotton crop was in good-to-excellent condition.
Reporting by Anushree Mukherjee in Bengaluru; Editing by Ravi Prakash Kumar
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
