Cotton edges up on wider commodities rally, dollar dip
ICE cotton futures inched up on Monday, lifted by a dip in the dollar and tracking a rebound across broader commodity and financial markets.
Cotton contracts for December were up 0.22 cent, or 0.2%, to 93.32 cents per lb, by 12:15 p.m. EDT (1815 GMT). Prices on Friday hit their lowest levels since Aug. 12.
Making cotton cheaper for buyers holding other currencies and potentially lending a boost to demand, the dollar eased from a nine-month high on Friday.
“Demand ideas are holding up strong and even with the return of COVID-19, economies really don’t seem to be closing up and the more economies we see open, the more demand we’ll likely see for clothes and, therefore, cotton,” said Jack Scoville, vice president at Chicago-based Price Futures Group.
Adding to cotton’s support, the S&P 500 stock index marched to a new record high and the prices of corn, soybeans and oil also rose in a commodities rebound, boosting sentiment.
Traders will eye a weekly crop progress report from the United States Department of Agriculture that is due to be released later on Monday.
Total futures market volume fell by 8,382 to 11,800 lots. Data showed total open interest fell 129 to 267,257 contracts in the previous session.