Cotton jumps about 3% on softer dollar, gains in wider markets

Freeport Resources

22/11/2022 17:07

Nov 22 (Reuters) - ICE cotton futures rebounded from an
over two-week low and rose about 3% on Tuesday as the U.S.
dollar retreated and gains in the wider financial markets
outweighed demand concerns arising from COVID curbs in top
consumer China.
    * The most-active cotton contract for March  CTH3  gained
2.31 cent, or 2.9%, to 82.09 cents per lb at 11:45 am EDT (1645
GMT), having earlier touched its lowest since Nov. 3 at 79.3
cents a lb.
    * The dollar retreated from previous session's highs, making
cotton less expensive for overseas buyers.  USD/ 
    * "In my opinion I could see this market priced right, if
not a little high. So, it will get a little bounce from activity
in the dollar. But overall it's going to come down to demand,"
said Jon Marcus, president of Lakefront Futures and Options
brokerage in Chicago.
    * "You're going into the Thanksgiving holiday and it's going
to be quiet but you will get some movement up here just based on
the fact that, you know, there's it sort of continued
volatility... but I don't expect much through the rest of the
week," he added.
    * ICE Futures U.S. expanded the cotton futures daily price
limit to 5 cents pr lb as prices traded limit down on Monday. 
    * The U.S. Department of Agriculture in a weekly crop
progress report on Monday said 79% of the cotton was harvested,
compared with 71% the week before.
        * Adding to the upbeat sentiment Wall Street's main
indexes, oil and Chicago wheat gained, as investors assuage
worries around the economic fallout of stricter COVID-19 curbs
in China.  GRA/   .N 
    * Higher oil prices make polyester, a substitute for cotton,
more expensive.
 (Reporting by Rahul Paswan in Bengaluru;)
 ((RahulKumar.Paswan@thomsonreuters.com; If within U.S. +1 646
223 8780;;))