Cotton rises despite WASDE predicting higher US production
Corrects to add attribution in paragraph 3
July 12 (Reuters) -Cotton futures climbed on Friday aided by weaker dollar and strength in equities market despite a supply and demand report from the U.S. Department of Agriculture (USDA) showed higher cotton production in the country for 2024/25.
* Cotton contracts for December CTZ4 rose 0.51 cent, or 0.7%, at 71.38 cents per lb at 1753 GMT. The contracts were headed for a weekly gain and gained about 0.3% so far this week.
* "I think the market has absorbed this (WASDE) report... (and) 70 cents is cheap enough, I would think the market could make a recovery based on near-termweather forecast," said Rogers Varner, president of Varner Brokerage in Cleveland.
* The U.S. dollar index .DXY fell 0.3% and hit its lowest since June 7 earlier in the session, making cotton cheaper for overseas buyers.
* Supporting the natural fiber, the global equities index rose as investors eyed U.S. interest-rate cuts and the U.S. earnings season kicked off. .N MKTS/GLOB
* "The July U.S. cotton projections for 2024/25 show higher acreage, production, and beginning and ending stocks compared to last month," according to the World Agriculture Supply and Demand Estimate (WASDE) report.
* The forecast for global production was raised to 1.1 million bales to 120.2 million, as per the report.
* Global consumption stood at 250,000 bales higher, with increases in India and Malaysia offsetting reductions elsewhere.
* "Revisions to the 2023/24 U.S. cotton balance sheet include a 200,000-bale reduction in exports to 11.6 million based on the slowing pace of export shipments and a corresponding 200,000-bale increase in ending stocks," the report showed.
* The weekly export data from the USDA on Thursday showed exports at 160,700 running bales (RB), down 9% from last week.
Reporting by Anmol Choubey in Bengaluru; Editing by Tasim Zahid
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.
