NEW YORK: ICE cotton futures inched up on Tuesday as concerns regarding crop damage due to Hurricane Laura and renewed optimism about the US-China trade ties supported the natural fibre, while coronavirus-induced demand worries limited gains.
Cotton contracts for December rose 0.05 cent, or 0.1%, at 65.87 cents per lb by 1:52 p.m. EDT (1752 GMT).
"There's some concern that (Hurricane) Laura will bring some excessive rain in parts of the delta and southeast," said Jack Scoville, vice president at Chicago-based Price Futures Group.
Anticipating deadly winds, rains and storm surges, the governor of Louisiana told citizens Laura could rival 2005's Hurricane Rita, one of the fiercest recorded in the Gulf.
Further supporting prices, top US and Chinese trade officials have reaffirmed their commitment to the Phase 1 trade deal.
"The fact that both sides are re-committing to the trade deal is always good news. (But) the wide economic recessions caused by the coronavirus makes sales tough. As long as coronavirus is around, demand is going to be an issue," Scoville said.
The United States is the biggest exporter of cotton, while China its largest consumer.
The coronavirus pandemic has hammered demand for cotton and apparel, sending prices 6.4% lower so far this year.
The US Department of Agriculture's (USDA) weekly crop progress report on Monday showed 46% of the crop was in good/excellent condition, up from last year's 43%.
However, 37% of the crop in Texas, the largest US cotton producing area, was in poor to very poor condition, as against last week's 33%.
Total futures market volume fell by 13,465 to 19,526 lots.-Reuters
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