Cotton retreats from over one-month high as dollar strengthens
May 29 (Reuters) -ICE cotton futures dipped on Wednesday, slipping from an over-a-month high in the previous session on a firmer dollar, while declines in the grains and equity markets added to the downbeat mood.
* Cotton contracts for July CTc1 fell 1.76 cent, or 2.14%, at 80.67 cents per lb by 12:15 p.m. ET (1615 GMT).
* The dollar index rose 0.4%, making cotton less attractive, especially for overseas buyers. USD/
* "As we approach the end of the month of May, (traders) are booking some profits," said Keith Brown, principal at cotton broker Keith Brown and Co. in Georgia. The U.S. Department of Agriculture's (USDA) export sales report will be issued on Friday due to the observance of Memorial Day on Monday, "so the market's just content to trade sideways to lower right now."
* Wall Street indexes retreated, as concerns around the timing and scale of the Federal Reserve's interest rate cuts pushed Treasury yields higher and pressured stocks. .N
* Further pressurising prices, Chicago wheat futures edged down on Wednesday, consolidating below a 10-month high as investors waited to see if forecast rain could stem a decline in harvest prospects in the biggest exporter Russia. GRA/
* Cotton prices could range from $0.76 cents to $0.81 cents until the USDA's planting intentions report is released at the end of June, Brown added.
* The USDA in a weekly crop progress report on Tuesday said 60% of the cotton crop was in good-to-excellent condition.
Reporting by Anushree Mukherjee in Bengaluru; Editing by Vijay Kishore
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