Cotton hits two-week high, supported by outside markets

ICE cotton rose to its highest level in two weeks on Tuesday, buoyed by strength in global equities and other commodity markets. "You can't expect cotton to turn its back on the outside world forever," said Ron Lawson, a partner at commodity investment firm Logic Advisors in Sonoma, California, noting that there was a "fear-off" sentiment amid waning concerns, for the moment, that China's slower growth would harm other markets.
December cotton on ICE Futures US settled up by 0.66 cent on Tuesday, a 1 percent gain, at 63.28 cents per pound, after rising as high as 63.68 cents a pound, the highest level since August 25. Total futures market volume rose by 9,120 to 16,627 lots. Data showed total open interest fell 38 to 179,014 contracts in the previous session.
Certificated cotton stocks deliverable as of September 4 totalled 61,348 480-lb bales, down from 62,404 in the previous session. The dollar index was down 0.16 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.86 percent. Specs cut net long position to 32,184 from 44,382 in the latest week. The Relative Strength Index in the most-active contract rose to 45.610.