Cotton has largest single-day rise in one month on dollar drop

ICE cotton futures had their largest single-session gains since April 24 on Thursday as the US dollar ended a four-day rally, falling against a basket of currencies and pressuring greenback-traded commodities like cotton. "It's taken a breather," Sharon Johnson, introducing broker for Wedbush Securities in Atlanta, said of the dollar. "Once it went down and stayed down, we started to see some improvement in cotton."
Cotton contracts for July on ICE Futures US settled up by 1.28 cents on Thursday, a 2 percent gain, at 64.33 cents per pound. It traded within a range of 63.03 and 64.54 cents a pound. The December contract's premium to front-month July cotton fell to 0.73 cent per lb, down from 0.98 cent the prior session. Total futures market volume rose by 589 to 25,769 lots. Data showed total open interest fell 458 to 188,261 contracts in the previous session. Certificated cotton stocks deliverable as of May 27 totalled 122,220 480-lb bales, up from 117,943 in the previous session. The dollar index was down 0.27 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.33 percent. The Relative Strength Index in the most-active contract rose to 48.495.