NEW YORK: ICE cotton futures rose more than 1% on Thursday, drawing on a positive sentiment from the grains market, and finding footing after posting their biggest daily decline since early April in the previous session.
Cotton contracts for December rose 1.35 cents, or 1.6%, to 86.25 cents per lb, at 12:19 p.m. EDT (1619 GMT).
"The market seems to find some value here following the sell-off yesterday which was pretty aggressive by itself, which presented a good opportunity for buyers to jump back into the market," said Bailey Thomen, cotton risk management associate at StoneX Group.
Prices fell over 3% to their lowest in a week on Wednesday following a disappointing US Agriculture Department report that some traders expected to show a bigger drop in planted acres of the natural fibre.
Chicago corn and soybeans rose to their highest since mid-June on Thursday as lower-than-expected US acreage estimates a day earlier fuelled supply concerns as some crops faced hot, dry weather.
Earlier on Thursday, USDA's weekly export sales report showed exports of 274,000 running bales for the 2020/2021 marketing year, up 33% from the previous week but down 3% from the prior four-week average.
Total futures market volume fell by 14,175 to 17,279 lots. Data showed total open interest gained 1,792 to 217,240 contracts in the previous session.
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