Cotton down for 2nd day on demand woes, Fed verdict in focus
Sept 18 (Reuters) -ICE cotton futures extended losses on Wednesday, down nearly 2%, on growing concerns over demand and as caution sets in ahead of the U.S. Federal Reserve monetary policy decision later in the day.
* Cotton contracts for December CTZ4 slipped $1.35, or 1.9%, to 70.81 cents per lb at 12:04 p.m. EDT (1604 GMT).
* "Demand failed to follow the rally and selling by producers increased which is pressuring prices under key support levels," said Valentin Olah, risk management consultant at StoneX Group.
* "Prices are expected to be in a 69-73 cents range bound trading in the near-term," Olah added.
* Focus now shifts to the U.S. Department of Agriculture's (USDA) weekly exports sales data due on Thursday for more cues on demand for the natural fiber.
* Last week, the USDA report showed export sales of 113,100 running bales (RB), down 30% from the previous week and 33% from the prior 4-week average. EXP/COT
* Meanwhile, wider financial and commodity markets were trading water as investors stepped onto the sidelines ahead of the Federal Reserve's highly anticipated first interest rate cut in more than four years. .N
* Offering some respite, the U.S. dollar edged lower against major currencies, giving up some of its overnight gain. USD/
* Chicago wheat futures rose on Wednesday after France's farm ministry downgraded the country's crop again, though sizeable exports of cheap Black Sea wheat continued to stifle a rally that drove prices to three-month highs last week. GRA/
Reporting by Brijesh Patel in Bengaluru; Editing by Shailesh Kuber
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
