NEW YORK: ICE cotton futures rebounded on Friday from a more than two-week low hit in the previous session, taking cues from the grains market, although the natural fibre was still on course to register its biggest weekly decline in five.
Cotton contracts for December rose 1.29 cent, or 1.5%, at 85.35 cents per lb, by 12:14 p.m. EDT (1614 GMT), having slipped to their lowest since June 1 at 83.37 cents on Thursday.
For the week, prices were down 2.9%, their worst since the week ended May 14.
"Corn and beans are all up pretty sharply, so part of its just a rebound after the big sell off yesterday. The other part is the weather is kind of dry now in Texas again and could be affecting production potentially," said Jack Scoville, vice president at Chicago-based Price Futures Group. Meanwhile, a heatwave in top cotton growing state Texas continued to threaten the crop.
Capping cotton's gains, the dollar index firmed near a two-month peak.
Market participants are now keeping a close eye on the Potential Tropical Cyclone Three near the Gulf of Mexico and awaiting a planting acreage report at the end of the month.