NEW YORK: ICE cotton futures fell by over 1% on Wednesday, tracking a retreat in core grains markets from multi-year highs, with focus turning to a weekly export sales report.
Cotton contracts for July were down 1.34 cents, or 1.5%, to 90.08 cents per lb by 12:22 EDT (1622 GMT). Prices touched their highest since March 1 on Tuesday.
“US corn, soybeans, and wheat had a huge correction yesterday and into last night,” and said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia.
Further, unexpected deliveries received against the May cotton contract amid the current perceived strength in demand was a negative, Brown added.
Prices of key grains fell on Wednesday, retreating from eight-year highs struck a day earlier as the market assessed the extent of weather risks that had fanned the recent run-up in prices.
They had already ended lower on Tuesday as the rally lost momentum following the intraday peaks.
Market participants await a weekly export sales report from the US Department of Agriculture on Thursday.
“As long as we do 100,000 bales, we’re going to be in good shape,” Brown said.