Cotton rises over 1% on mill fixations after sharp fall
21/09/2021 18:12
Sept 21 (Reuters) - ICE cotton futures rose more than 1% on
Tuesday, with mills taking advantage of a steep fall in the
previous session to buy back some of the natural fiber, while a
weaker dollar offered further support.
* The cotton contract for December CTZ1 rose 1.22 cents,
or 1.4%, to 90.24 cents per lb by 01:00 p.m. ET (1700 GMT),
after hitting its lowest since Aug. 3 in the previous session.
* "People that are looking to get back in the market are
taking advantage of these lower prices that we haven't seen in a
month or two. It could be related to new speculators or also
could be related to some mill fixations," Bailey Thomen, cotton
risk management associate at StoneX Group said.
* "Also the U.S. dollar has pulled back a little bit which is
helping commodities. However, the cotton market is still
susceptible to a further sell off from some of these outside
market forces"
* The dollar .DXY slipped 0.1% against its rivals after
touching a near one-month peak on Monday, making cotton less
expensive for buyers holding other currencies. USD/
* World stock markets stabilized after a sharp sell-off, as
investors assessed the level of contagion stemming from distress
of debt-saddled property group China Evergrande. MKTS/GLOB
* Total futures market volume fell by 35,805 to 17,827 lots.
Data showed total open interest fell 8,727 to 263,976 contracts
in the previous session.
* Certificated cotton stocks CERT-COT-STX deliverable as of
Sept. 17 totaled 60,976 480-lb bales, down from 63,515 in the
previous session.
(Reporting by Brijesh Patel in Bengaluru; Editing by Shailesh
Kuber)
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