Cotton down on Texas rains, stronger dollar
Cotton futures prices fell to the lowest in over a week on Wednesday, weighed down by rains in key producing areas in the United States and a stronger US dollar. “Showers and rain across West Texas (Tuesday) evening and higher US currency value are likely tempering buying interest,” said Louis Rose, an independent cotton trader and consultant with Risk Analytics in Memphis.
Rain in August, albeit late, is beneficial to the crop, according to Jordan Lea, chairman and co-owner of Eastern Trading in Greenville, South Carolina. “This rain over Lubbock, Texas started last night and it is the real deal,” Lea noted. The market also awaited the release of the US Department of Agriculture’s weekly export sales report on Thursday.
The December cotton contract on ICE Futures US settled down 0.65 cent, or 0.95 percent at 67.79 cents per lb. It traded within a range of 67.55 and 68.88 cents a lb. The dollar index was up 0.25 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 1.51 percent. Total futures market volume rose by 4,449 to 15,965 lots. Data showed total open interest fell 300 to 228,356 contracts in the previous session. US attache sees 2016 cotton production in Turkey up 20 percent from prior year.