ICE cotton futures edged higher on Wednesday, after notching their biggest one-day percentage loss in over a month in the previous session, supported by speculative buying and a weaker US dollar. "I think what you are seeing is a lot of speculative movement," said Jim Lambert, director of sales at Capstone Merchant Services.
"The speculative community is strongly looking at unpriced mill fixations ... Mills still need to fix the purchases from February-April," Lambert added.
The dollar hit a roughly seven-week low against a basket of major currencies on Wednesday on worries that US President Donald Trump was focusing too much on protectionism and not enough on pro-growth policies.
The March cotton contract on ICE Futures US settled up 0.31 cent, or 0.42 percent, at 73.88 cents per lb. It traded within a range of 73.14 and 74.17 cents a lb.
Total futures market volume fell by 24,551 to 23,520 lots. Data showed total open interest fell by 1,046 to 264,328 contracts in the previous session.
The dollar index fell 0.39 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 0.50 percent.
The US export sales data from the US Department of Agriculture is due on Thursday.
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