ICE cotton futures rose over 1% on Monday helped by positive statements about the potential signing of the US-China Phase 1 trade deal and a falling dollar. Cotton contracts for March rose 0.75 cent, or 1.09%, to 69.67 cents per lb by 13:11 p.m. EST (1811 GMT).
It traded within a range of 68.94 to 69.69 cents a lb, having touched a fresh near seven-month high earlier. Although no specific date has been set to sign any deal, the market is higher because it still embraces the optimism of the US-China trade deal, said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia.
The dollar index was down 0.3%. A weaker greenback makes commodities priced in dollars, such as cotton, less expensive for holders of other currencies. Global equity markets continued to trade near the record highs attained last week as better than expected economic data from US and China negated investor concerns regarding a global slowdown.
The White House's trade adviser, Peter Navarro, on Monday said the Phase 1 trade deal would likely be signed next week. Total futures market volume fell by 1,061 to 19,616 lots. Data showed total open interest gained 2,057 to 217,136 contracts in the previous session. Certificated cotton stocks deliverable as of Dec. 27 totaled 11,699 480-lb bales, unchanged from the previous session.
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