Cotton drops in pullback from last week's gains as dollar rises

Cotton futures dropped the most in a single session in more than a month on Monday, pulling back from sharp gains last week as the US dollar rose to a more than eight-month high and pressured greenback-traded commodities like cotton. "It got a little ahead of itself on Friday," said Ron Lawson, a partner at commodity investment firm Logic Advisors in Sonoma, California, noting that certificated stocks had built on their significant gains the prior week. "Guys who bought it on nerves Friday sold it on reality."
The March cotton contract on ICE Futures US settled down 1.29 cent, or 2 percent, at 62.64 cents per lb, the sharpest single-session drop since October 22. The contract finished the month of November down 0.36 cent, or 0.6 percent. Certificated cotton stocks deliverable as of November 27 totalled 63,958 480-lb bales, unchanged from the previous session. The dollar index was up 0.2 percent. The Thomson Reuters Core Commodity CRB Index, which tracks 19 commodities, was down 0.4 percent.