Cotton hovers near three-month high on grains support
Sept 23 (Reuters) -ICE cotton futures were little changed on Monday, hovering near a three-month high buoyed by gains in the broader agricultural markets, while traders assessed the impact from tropical cyclone in the Atlantic on crops in some key growing regions.
* Cotton contracts for December CTZ4 were down 0.09 cents, or 0.1%, at 73.43 cents per lb at 12:22 a.m. EDT (1622 GMT).
* "The disorganized low-pressure system may move into Alabama, Georgia and Florida by Thursday, where a lot of cotton is open. Heavy rains won't wipe out the crop but could hurt its quality," said Rogers Varner, president of Varner Brokerage in Cleveland.
* Potential Tropical Cyclone Nine formed about 350 miles (565 km) south-southeast of the western tip of Cuba and is expected to develop into a hurricane on Wednesday as it moves across the eastern Gulf of Mexico, the U.S. National Hurricane Center (NHC) said on Monday.
* "Chicago markets are performing well, with corn, wheat, and soybeans all up, and that's a little bit positive for cotton."
* Chicago wheat rose with prices supported by concern about poor crop weather, while soybeans rose, underpinned by dry weather delaying planting in the world's biggest exporter Brazil, also supporting corn. GRA/
* Oil prices ticked up as investors worried about supply after tensions in the Middle East escalated and as the development of a tropical disturbance in the Gulf of Mexico shut in some production. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
* Wall Street's main indexes inched higher in choppy trading as investors focused on comments from Federal Reserve policymakers, following the central bank's decision to commence monetary policy easing. .N
Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Vijay Kishore
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