Cotton hits one-month high on dollar slide, strong risk appetite
Aug 23 (Reuters) -ICE cotton futures rose more than 2% on Friday, hitting their highest level in a month, and were on track for their best week in three months on lower U.S. dollar and upbeat sentiment in wider financial and commodity markets.
* Cotton contracts for December CTZ4 rose 1.74 cent, or 2.51%, to 71.08 cents per lb at 11:40 a.m. EDT (1540 GMT), having hit theirhighest level since July 22 earlier in the session.
* The contract was up 5.8% so far this week.
* "Crude oil is trading quite a bit higher, stocks and everything are also up as well... dollar is also down today, so I think all these factors are playing in today," said Bailey Thomen, cotton risk management consultant at StoneX Group.
* "Besides that could be a little bit of repositioning ahead of the weekend," added Thomen.
* The dollar index .DXY dropped to its lowest level in nearly eight months, down 0.8% against its rivals, making cotton less expensive for overseas buyers.
* Oil prices rose more than 1%, making cotton-substitute polyester more expensive. O/R
* World shares gained on Friday, just shy of all-time highs, after a speech by Federal Reserve Chair Jerome Powell confirmed the U.S. central bank would soon begin interest-rate cuts. MKTS/GLOB
* Elsewhere, Chicago wheat fell for a third session, while corn and soybeans steadied near four-year lows, with the easing of a rail stoppage in Canada shifting attention to ample global supplies. GRA/
Reporting by Anmol Choubey in Bengaluru; Editing by Shreya Biswas
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.
