ICE cotton futures rose to their highest levels in more than a week on Thursday, boosted by a weaker US dollar after a weekly US government export sales report showed an increase in new sales over the prior week. "The dollar is in more of a retreat mode," said cotton trader Keith Brown of Moultrie, Georgia. A weaker dollar boosts greenback-traded commodities like cotton by making them less expensive to holders of other currencies.
Cotton contracts for July settled up by 0.76 cent, or 1.2 percent, at 66.53 cents per pound on Thursday. It traded within a range of 65.59 cents to 66.73 cents, the highest level for the front-month since May 6. Weekly export sales rose to 48,800 bales from 19,800 the prior week, according to data released on Thursday. The cash to second-month spread gained 1.84 cent to 0.05 cents per pound.
Total futures market volume rose by 3,309 to 20,480 lots. Data showed total open interest gained 912 to 192,168 contracts in the previous session. Certificated cotton stocks deliverable as of May 13 totalled 114,052 480-lb bales, up from 108,517 in the previous session. The dollar index was down 0.15 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.27 percent. The Relative Strength Index in the most-active contract rose to 56.162.
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