Commodities found, a few, buyers at last, helping even cottonshake-off the blues – ending its longest losing streak since at least 1980.
The CRB commodities index, which set a 16-month closing low in the last session, recovered 0.3%, helped by a falling dollar.
A weaker dollar boosts prices of dollar-denominated commodities by making them more affordable to buyers in other currencies.
Cotton finds elasticity at last
And cotton was one of the most signal beneficiaries of this more positive mood, adding 1.5% to 77.07 cents a pound in New York for December delivery.
OK, that was less than half the bounce it managed earlier, from its own nine-month low.
But at least it managed to end a 13-session losing streak which has cost the contract more than 9%, and blamed on improved hopes for harvests in India and the US, while China, the top importer, is curtailing stockpiling which has been a huge prop for prices both domestically and worldwide.
Not that there was much fundamental viewed as behind the bounce, but technical factors, as investors with short positions took profit as the contract approached a 75-cents-a-pound level which had been trailed by analysts as a likely level when bargain hunting would kick in.
A trend of increase in certified US cotton inventories (that is, certified for delivery against futures) which has also weighed on values remained intact, with stocks hitting 172,000 bales, up more than 11,000 bales on Tuesday’s total.