Cotton falls as harvest pressure, favorable weather weighs on market
Oct 15 (Reuters) — ICE cotton futures fell more than 1% on Thursday, easing off a one-month high hit in the previous session, as harvest pressure combined with improving weather conditions weighed on prices, while a broader weakness in soybean markets added to the negative sentiment. Cotton contracts for December fell 0.83 cent, or 1.03%, to 79.83 cents per lb by 9:57 a.m. ET (1357 GMT). The contract fell below the 80-cent-per-lb mark after briefly trading above 82 cents in the previous session for the first time in almost a month. "I think we're at harvest time... and cotton's down. I just feel like it's the harvest that's kind of keeping things under pressure," said Jack Scoville, vice president at Price Futures Group. "There's been some showers out in Texas, but they seem to be abating right now. So, that would be a supportive factor for good harvest progress and it'll be a little negative to prices," Scoville added. Improving weather conditions can aid harvesting and increase the flow of supplies to market, adding pressure to prices. Additionally, Chicago soybean futures extended a decline on Thursday to touch a seven-week low as progress in harvesting what is forecast to be a
Oct 15 (Reuters) — ICE cotton futures fell more than 1% on Thursday, easing off a one-month high hit in the previous session, as harvest pressure combined with improving weather conditions weighed on prices, while a broader weakness in soybean markets added to the negative sentiment. Cotton contracts for December fell 0.83 cent, or 1.03%, to 79.83 cents per lb by 9:57 a.m. ET (1357 GMT). The contract fell below the 80-cent-per-lb mark after briefly trading above 82 cents in the previous session for the first time in almost a month.
"I think we're at harvest time... and cotton's down. I just feel like it's the harvest that's kind of keeping things under pressure," said Jack Scoville, vice president at Price Futures Group. "There's been some showers out in Texas, but they seem to be abating right now.
So, that would be a supportive factor for good harvest progress and it'll be a little negative to prices," Scoville added. Improving weather conditions can aid harvesting and increase the flow of supplies to market, adding pressure to prices. Additionally, Chicago soybean futures extended a decline on Thursday to touch a seven-week low as progress in harvesting what is forecast to be a record US crop offset support from renewed Chinese demand, analysts said. GRA/ Declines in soybeans can weigh on cotton by dampening sentiment across agricultural commodity markets.
Elsewhere, Brent crude prices fell around 1% as potential US steps to ease restrictions on Russia's "shadow fleet" tankers soothed high price concerns, but attacks on ships in the Middle East and Ukrainian strikes on Russian energy infrastructure limited the decline. O/R Lower oil prices can weigh on cotton by reducing the cost of producing polyester, a competing synthetic fiber, potentially making it more attractive relative to cotton. (Reporting by Vedika Thorat in Bengaluru; Editing by Shailesh Kuber) ((Vedika.Thorat@thomsonreuters.com;)