Cotton up on positive sales report, weaker dollar, higher
Cotton futures rose on Thursday on a positive weekly export sales report from the US Department of Agriculture (USDA), backed by a weaker US dollar while certificated stocks dipped to their lowest level in over three months. The market factored in weekly export sales data from the USDA, which showed net upland sales totalled 205,000 running bales (RB) of cotton for the week ended Aug. 11 for the 2016/2017 marketing year, up from 132,000 RB the previous week.
Higher crude oil prices, a weaker US dollar and a good export sales report have had a positive impact on prices, according to Michael McDougall, director of commodities for Societe Generale in New York. The December cotton contract on ICE Futures US settled up 0.2 cent, or 0.29 percent, at 69.01 cents per lb. It traded within a range of 68.82 and 70.15 cents a lb.
Certificated cotton stocks deliverable as of 17AUG16 totalled 84,078 480-lb bales, unchanged from 84,078 in the previous session its lowest level since May 16. The dollar index was down 0.62 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 1.31 percent.