Cotton off one — month highs as markets assess bearish USDA supply outlook
Oct 12 (Reuters) — ICE cotton futures were little changed on Monday, holding below a near one-month high hit in the previous session, as last week's forecast of larger US supplies capped gains. Cotton contracts for December rose 0.21 cent, or 0.3%, to 80.75 cents per lb by 10:17 a.m. ET (1417 GMT). The contract touched its highest level since September 14 on Friday amid concerns that Hurricane Isaias could damage crops. Although the storm has since dissipated, the US Department of Agriculture's latest crop progress report, due later in the day, is expected to provide further insight into potential crop damage. The contract was trading near a more than three-month low of around 74 cents per lb earlier this month on a stronger dollar, lower demand and increased supply concerns before heavy rains sparked concerns about damage to crops in the United States. "The last five or six days, it's sort of put in a temporary bottom... now we're hovering right around 80. You probably have found your lows for a little bit," said Jon Marcus, president of Lakefront Futures and Options in Chicago. "I wouldn't expect it to go too much lower... I think that's probably a fair price for buyers and selle
Oct 12 (Reuters) — ICE cotton futures were little changed on Monday, holding below a near one-month high hit in the previous session, as last week's forecast of larger US supplies capped gains. m. ET (1417 GMT). The contract touched its highest level since September 14 on Friday amid concerns that Hurricane Isaias could damage crops.
Although the storm has since dissipated, the US Department of Agriculture's latest crop progress report, due later in the day, is expected to provide further insight into potential crop damage. The contract was trading near a more than three-month low of around 74 cents per lb earlier this month on a stronger dollar, lower demand and increased supply concerns before heavy rains sparked concerns about damage to crops in the United States. "The last five or six days, it's sort of put in a temporary bottom... now we're hovering right around 80.
You probably have found your lows for a little bit," said Jon Marcus, president of Lakefront Futures and Options in Chicago. "I wouldn't expect it to go too much lower... I think that's probably a fair price for buyers and sellers," Marcus added. 80 million bales.
Higher production and larger ending stocks can weigh on cotton prices by signaling more abundant supplies and easing concerns about market tightness. Meanwhile, the dollar traded around its highest in a year and a half. USD/ A stronger dollar can weigh on cotton prices by making US supplies more expensive for overseas buyers. Elsewhere, oil prices rose to near two-week highs as attacks on Saudi Arabia overshadowed possible further supplies to the market after US President Donald Trump hailed fresh Russian diesel exports and a Russia-Ukraine energy ceasefire.
Higher oil prices can support cotton by increasing the cost of producing polyester, a competing synthetic fiber, potentially improving cotton's relative competitiveness. com;)