ICE cotton edges up as weather concerns help prices
May 21 (Reuters) -ICE cotton futures rose on Tuesday, buoyed by concerns about persistent wet weather conditions and its impact on crop planting progress.
* Cotton contracts for July CTc1 rose 0.4 cent, or 0.5%, to 76.47 cents per lb by 12:45 p.m. ET (1645 GMT).
* The contract is unlikely to see much movement in prices unless there's a rally and it closes above the 77 cent level, said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton, adding that "it looks like there's good support for us at 73-80 cents...but there's just not much going on."
* "Farmers are nearing or have passed the insurance cut-off dates, so people are looking at making decisions on whether to keep planting (cotton) or take preventive planting insurance and plant soybeans in the area," Nunn said.
* Crop insurance can provide an effective means of managing risk in cotton production. Insurance cut-off prevents the reinsurer from being liable for claims after the contract termination date.
* Meanwhile, the U.S. dollar struggled for direction as investors stuck to their views on the expected timing of Federal Reserve monetary easing this year.
* In other agricultural markets, Chicago Board of Trade wheat futures reached their highest level since July as frost damage in top exporter Russia supported prices, traders said. GRA/
* Traders now await the U.S. Department of Agriculture (USDA)'s weekly export sales report on Thursday for further clues on the demand outlook.
* "If you look at the export reports, we see solid numbers still going forward on new sales," Nunn said.
Reporting by Anjana Anil in Bengaluru; Editing by Ravi Prakash Kumar
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.
