Cotton prices rose on Monday to hit its highest in more than a week, as investors rolled over their positions from the front-month contract, while a stronger grains market further supported the natural fibre. The most active cotton contract on ICE Futures US, the third-month December contract, rose 0.67 cent, or 1%, to settle at 66.42 cents per lb. It traded within a range of 65.73 and 66.80 cents a lb - its highest since June 7.
"We are rolling from July to December (contracts). People are selling July and buying December to stay long," said Jon Marcus, president of the Lakefront Futures and Options brokerage in Chicago. Corn, wheat and soybeans rose on Monday as more rain and flooding in parts of the US Midwest raised concerns about damage to the crops.
The US dollar index inched lower on Monday after touching a two-week high on weak economic data as investors exercised caution on the possibility of Federal Reserve's dovish stance. A weaker greenback makes commodities priced in dollars, such as cotton, cheaper for holders of other currencies. Meanwhile, a delay in the Indian summer crop could possibly help improve the situation for the US cotton market, Lakefront's Marcus added.
The USDA is expected to report its estimates for all cotton planted acres in the United States on June 28. Total futures market volume rose by 916 to 35,096 lots. Data showed total open interest fell 11,012 to 193,423 contracts in the previous session. Certificated cotton stocks deliverable as of June 14 totalled 93,721 480-lb bales, up from 89,643 in the previous session.
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