Cotton rises on lower dollar; West Texas weather in focus
- The dollar fell 0.4pc making greenback denominated U.S cotton cheaper for buyers in other currencies.
ICE cotton futures firmed on Tuesday drawing support from a weaker dollar, while traders kept a close eye on weather conditions in the top-cotton producing region of West Texas.
Cotton contracts for July rose 1.45 cent, or 1.8pc, to 83.77 cents per lb by 1:44 p.m EDT (1744 GMT). It traded within a range of 82.32 and 84.3 cents a lb.
"They (West Texas) just haven't had the heavy rains they need and I think the market's starting to recognize that," said Keith Brown, principal at cotton brokers Keith Brown in Georgia, noting that prices were also helped by overbought technicals and a weaker dollar.
"The ground there is so dry that a lot of this rain is going to roll off and not soak in (to the soil), so it's not the negative event (for the market) that you think it is," Brown added.
The dollar fell 0.4pc making greenback denominated U.S cotton cheaper for buyers in other currencies.
The U.S. Department of Agriculture's weekly crop progress report showed that 38pc of the U.S. cotton crop has been planted by the week ended May 16.
That compares with a five year average of 40pc and 42pc this time last year.
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