Dec 4, 2024
Dec 4 (Reuters) -ICE cotton futures edged higher on Wednesday as the U.S. dollar experienced a pullback, and as positive sentiment in the oil market supported prices, while investors awaited a federal weekly export sales report on Thursday to gauge demand.
* Cotton contracts for March CTc2 rose 0.29 cent, or 0.4%, to 71.56 cents per lb as of 10:45 a.m. ET (1545 GMT).
* "Dollar is down a little bit. Tomorrow, we get export sales, and the last two weeks the sales have been marketing year highs, so market may be anticipating that," said Keith Brown, principal at cotton broker Keith Brown and Co. in Georgia.
* The U.S. dollar .DXY eased, making greenback-priced cotton less expensive for buyers holding other currencies. USD/
* Traders are looking ahead to the weekly export sales report from the U.S. Department of Agriculture (USDA) due on Thursday.
* The report from the past two weeks showed consecutive marketing year highs for the sales of upland cotton, highlighting improved demand for the natural fiber.
* Oil prices rose slightly, with traders expecting OPEC+ to announce an extension to supply cuts this week while heightened geopolitical tensions continue to dominate market sentiment. O/R
* Higher oil prices make cotton-substitute polyester more expensive.
* Wall Street's main indexes opened higher, with the benchmark S&P 500 and the Nasdaq hitting all-time highs as investors focused on upcoming economic data as well as remarks from Federal Reserve Chair Jerome Powell. .N
* In other agricultural markets, Chicago soybean futures slid, giving up some of the gains from the previous session, as the prospect of a record crop in Brazil weighed on the market. --- Reuters
(Source: www.xm.com)