Cotton rises most in over four weeks on short covering

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Cotton futures rose on Tuesday for their biggest one-day gain in more than four weeks as investors continued to cover their shorts and place new bullish bets amid a weaker dollar, traders said. Prices were also lifted by buying across the agricultural market, as soybeans hit their highest since November 2014. Cotton contracts for July settled up 1.21 cents, or 1.98 percent, at 62.2 cents per lb. It traded within a range of 61 and 62.5 cents a lb. Total futures market volume rose by 9,866 to 30,456 lots. Data showed total open interest fell 1,002 from 188,149 contracts in the previous session, suggesting the gains were in part due to short covering. Certificated cotton stocks deliverable on Monday totalled 81,820 480-lb bales, up from 81,300 in the previous session. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.69 percent. China cotton futures on the Zhengzhou Commodity Exchange closed up 3.06 percent at 12,620 yuan per tonne.

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