Cotton slips as dollar gains; posts worst week in 2-months

April 18 (Reuters) - ICE cotton futures fell on Thursday as
the dollar strengthened, while a fall in the weekly export sales
report from the United States Department of Agriculture's (USDA)
added to the downbeat sentiment.
* The most-active cotton contract on ICE Futures U.S. July

settled down 0.69 cent, or 0.87 percent, at 78.27 cents per lb.
It traded within a range of 77.77 and 79.04 cents per lb.
* Prices fell 0.7% this week, its worst weekly decline in
two
months.
* "The dollar is up and it is the end of the week. It was an
opportunity for those who were long in the market this week to
get out and reposition themselves for Monday," said Jon Marcus,
president of the Lakefront Futures and Options brokerage firm in
Chicago.
* The dollar against a basket of other currencies
gained on
the back of strong retail sales data. A stronger greenback makes
commodities priced in dollars, such as cotton, more expensive
for holders of other currencies.
* The USDA reported net sales of 217,600 running bales
(RB)for
2018/2019 which were down 25% from the previous week and 9%
lower from the prior 4-week average, for the week ended April
11.
* The slide in USDA's weekly export data was a "force pin
for
people making a decision to just get flat for the weekend",
Marcus said.
* The United States won a World Trade Organization (WTO)
ruling on
Thursday against China's use of tariff-rate quotas for rice,
wheat and corn, which it successfully argued limited market
access for U.S. grain exports.
* ICE Futures U.S. soft agricultural commodity futures and
options
markets will be closed on Friday for Good Friday holiday.
* Total futures market volume fell by 20,876 to 18,654 lots.
Data
showed total open interest gained 336 to 212,845 contracts in
the previous session.
* Certificated cotton stocks <CERT-COT-STX> deliverable as
of
April 17 totaled 57,655 480-lb bales, up from 55,517 in the
previous session.


(Reporting by Karthika Suresh Namboothiri in Bengaluru)


2019-04-18 21:03:48

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