ICE cotton futures fell for the second straight session on Tuesday, weighed down by a stronger US dollar amid broad weakness in grains markets. The overbought condition of the cotton market and higher US currency value were the key factors that pushed prices lower, said Louis Rose, an independent cotton trader and consultant with Risk Analytics in Memphis, Tennessee.
The cotton market also factored in weaknesses in the overall grains market and increased producer selling of US new crop, Rose added. The December cotton contract on ICE Futures US settled down 0.68 cent, or 0.92 percent, at 73.27 cents per lb. It traded within a range of 72.63 to 74.46 cents a lb. The dollar index was up 0.55 percent. The dollar rose to a four-month high against a basket of major currencies on Tuesday after the release of data showing US housing starts rose by more than expected in June.
The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was down 1.11 percent. December corn was down 13 cents at $3.50-1/4 a bushel and new-crop November soybeans were down 36 cents at $10.30-1/4 per bushel. September wheat was down 11-3/4 cents at $4.17-3/4 a bushel.