Cotton futures gain on unfavorable weather, dollar pull-back
- Cotton contracts for December settled up 0.21 cent, or 0.3%, at 65.46 cents per lb, after earlier touching their lowest level since Sept. 11.
- The dollar was down 0.1% against key rivals after hitting a two-month high earlier in the session on economic recovery concerns.
ICE cotton futures edged higher on Thursday, after touching a two-week low earlier, as the dollar retreated and unfavorable weather in major crop-growing regions in the United States supported prices.
Cotton contracts for December settled up 0.21 cent, or 0.3%, at 65.46 cents per lb, after earlier touching their lowest level since Sept. 11.
The dollar has reversed course and there are also some rains all over the delta, said Louis Barbera, partner and analyst at VLM Commodities LTD.
An isolated tornado or two are possible across Southern Alabama, while rainfall of 1 to 3 inches will be possible on Friday across the remainder of the Carolinas due to post-tropical cyclone Beta, located near Jackson, Mississippi, as per the US NHC.
The dollar was down 0.1% against key rivals after hitting a two-month high earlier in the session on economic recovery concerns.
Data showed the number of Americans filing new claims for unemployment benefits unexpectedly increased last week.
There are uncertainties around employment in the United States, while relations with China are getting worse, said Jordan Lea, senior trader at DECA Global.
"So, on the macro front these factors are creating some anxiety."
The US Department of Agriculture's weekly export sales report showed net sales of 92,700 running bales were down 82% and exports of 281,900 RB were up 50% from the previous week. Exports were primarily to China at 117,700 RB.
Total futures market volume rose by 4,372 to 20,620 lots. Data showed total open interest gained 74 to 221,394 contracts in the previous session.
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