Cotton rebounds from two-week low with support from outside markets

ICE cotton futures rebounded on Thursday after hitting a two-week low in the prior session, bouncing back from three consecutive sessions of losses on support from sharp rallies in equities and other commodity markets. "We needed to have such a move after three sharp down moves," said Chris Kramedjian, a risk management consultant with INTL FCStone in Memphis, Tennessee. "Oil's up, and you've got a rally in soybeans and corn. It looked like a total risk-on day all over again."
December cotton on ICE Futures US settled up by 0.84 cent on Thursday, a 1.3 percent gain, to 63.35 cents per pound. It traded within a range of 62.40 and 63.42 cents a pound. Certificated cotton stocks deliverable as of August 26 totalled 76,487 480-lb bales, down from 78,585 in the previous session. The dollar index was up 0.63 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 3.97 percent. The Relative Strength Index in the most-active contract rose to 43.145. US export sales totaled 61,100 bales last week, with increases reported in Colombia, Mexico and Costa Rica, with shipments of 102,500 bales, according to a weekly US government report.