Cotton hits 4-year low on firm dollar, technical selling
Aug 8 (Reuters) -ICE cotton futures dipped to its lowest level in nearly four years on Thursday, pressured by a firm dollar and technical selling.
* Cotton contracts for December CTZ4 fell 0.39 cent, or 0.58%, at 67.34 cents per lb at 12:08 a.m. EDT (1608 GMT), having hit its lowest level since Oct. 7, 2020, earlier in the session.
* "Cotton continues struggling with technical selling and pressure is evident across its grains peers, while other softs are mixed with a lower bias," said Valentin Olah, risk management consultant at StoneX Group. GRA/
* The U.S. dollar index .DXY rose 0.2%, making cotton more expensive for overseas buyers.
* Cotton prices are trading below the 21-50-100-and-200 day moving averages. The chart-based traders who operate on technicals see this as a bearish signal.
* "Prices seem more stable, and value is being discovered around these levels, demand is slowly coming in," said Olah.
* "High temperatures and little to no rains are expected for most of the cotton belt in the next 10 days, which can stress Western regions, but help dry the South East after Debby which continues to drift slowly."
* The U.S. Department of Agriculture (USDA) report showed exports for the period ending July 31 of 738,100 RB brought accumulated exports to 11,070,400 RB, down 6 percent from the prior years' total of 11,777,500 RB.EXP/COT
* The report also showed net sales reductions of Upland cotton totaling 949,600 RB for 2024/2025 marketing year.
Reporting by Anmol Choubey in Bengaluru; Editing by Shailesh Kuber
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