Cotton rebounds on technical buying, wider markets lend support
Oct 16 (Reuters) -ICE cotton futures rose on Wednesday, recovering from a three-week low hit in the previous session, aided by a technical correction, while an uptick in grains and crude oil markets also extended some support.
* Cotton contract for December CTZ4 rose 0.81 cent, or 1.15%, to 71.43 cents per lb at 11:52 a.m. ET (1552 GMT). The contract hit its lowest level since Sept. 18 on Tuesday.
* With around 30% of cotton harvested reducing selling pressure from hedgers and speculation over China's potential stimulus, "the market's just gotten a little cheap enough down here, and we've just sort of had a Wednesday snap up", said Rogers Varner, president of Varner Brokerage, in Cleveland.
* "The fact the market's up in the face of a higher dollar just says to me it's a special cotton situation where it's just somewhat oversold. And so the market's correcting to the upside. The trend of cotton is still sideways to down."
* The U.S. dollar rose to hit a new 10-week high on Wednesday. USD/
* Chicago corn and soybean futures edged higher after hitting multi-week lows in the previous session, when forecasts of rain in Brazil and Argentina eased drought concerns. GRA/
* Oil prices edged up as uncertainty looms over what may happen next in the Middle East conflict. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
Reporting by Anjana Anil in Bengaluru; Editing by Shilpi Majumdar
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