Cotton futures slip for fourth straight session to 19-month low
June 3 (Reuters) -ICE cotton futures fell for a fourth consecutive session to its lowest level in 19 months on Monday, pressured by technical selling and a downbeat oil market.
* Cotton contracts for July CTc1 fell 2.8 cents, or 3.68%, at 73.35 cents per lb by 12:43 p.m. ET (1643 GMT).
* The market is seeing further technical selling from the last week, said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago. "There hasn't been a whole lot of reason to buy this market, because it has been in a bearish trend."
*On the other hand, "if you have any weather scares, you’ll be right back to 80 cents and at some point during the summer, I’m sure you’ll see that," Marcus added.
* Oil prices edged lower on Monday as investors digested the complex deal brokered by producer group OPEC+ to extend various layers of output cuts, much of them into 2025. O/R
* Lower oil prices make cotton-substitute polyester less expensive.
* "A lot of the selling pressure is coming in from the speculative trading side, repositioning, even exiting contracts before the July 1 notice day starts to approach in a couple weeks," said Bailey Thomen, cotton risk management consultant at StoneX Group.
* ICE cotton speculators trimmed net short position by 7,803 contracts to 20,416 in week to May 28 on Friday.
* Meanwhile, Chicago wheat rose on Monday after three sessions of declines, as worries over bad weather damaging Russian crops supported prices that hit 10-month highs last week. GRA/
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.
