Cotton hits 3-1/2 yr low on strong dollar, favourable weather outlook
June 17 (Reuters) -ICE cotton futures slid nearly 3% to a more than 3-1/2 year low on Monday, pressured by a stronger U.S. dollar and expectations of good weather boosting supplies in the key growing region.
* Cotton contracts for December CTZ4 fell 0.87 cents, or 1.2%, to 71.27 cents per lb by 11:49 p.m. ET (1549 GMT), after hitting its lowest since November 2020 at 70 cents earlier in the session.
* The dollar =USD rose for the third straight session to hover near more than one-month high hit in the last session, making cotton more expensive for overseas buyers. USD/
* Cotton is pressured by a bunch of factors such as stronger dollar, good weather and the first notice day being only five days away, said Rogers Varner, president of Varner Brokerage in Cleveland.
* "Cotton has a history of going down as notice day approaches so my guess is that we're not going to see any recovery in the market until we get notice day behind us."
* Pressuring the natural fibre, Chicago wheat fell 3% to its lowest in about six weeks while corn and soybeans also fell. GRA/
* Wall Street's main indexes edged lower as investors awaited fresh economic data and comments from Federal Reserve officials throughout the week for more clarity on monetary policy. .N
* Meanwhile, cotton speculators increased the net short position by 10,885 contracts to 43,248 in the week to June 11.
Reporting by Rahul Paswan in Bengaluru; Editing by Alan Barona
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.
