Cotton gains on weather concerns, limited farmer selling

Oct 13 (Reuters) — ICE cotton futures edged higher on Tuesday, extending gains for a third straight session, as concerns over weather-related crop damage in key US growing regions and limited farmer selling supported prices, while a softer dollar offered additional support. m. ET (1332 GMT). The contract has risen for three consecutive sessions after hitting a four-week high earlier this week.

"You know, there's been some bad weather down in cotton country, and I think with a lot of rain and a hurricane moving through," said Jack Scoville, vice president at Price Futures Group. Weather disruptions from Hurricane Isaias have raised concerns about crop damage and harvest delays in key US cotton-growing regions, lending support to cotton prices. "I think farmers are probably not selling much right now, and that's helping support things as well... we're waiting on the crop progress report that'll be out this afternoon," Scoville added.

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. Additionally, limited farmer selling can support prices by reducing available supplies in the market. The dollar slipped from 18-month highs on Tuesday in line with a retreat in oil prices, with investors hoping the Middle East conflict would remain contained ahead of US midterm elections and shifting focus to the Federal Reserve's rate path. USD/ A weaker US dollar can support cotton prices by making US supplies cheaper for overseas buyers and improving export competitiveness.

5% on Tuesday, a day after benchmark Brent hit an almost one-month high as traders monitored attacks on Saudi Arabia and prospects for additional diesel supply from Russia. Lower oil prices can pressure cotton by reducing the cost of producing polyester, a competing synthetic fiber, potentially making it more attractive relative to cotton. com;)