ICE Cotton futures prices rose on Wednesday, after one of the largest exporter of the natural fiber, the United States, and the biggest consumer, China, agreed to revive their trade talks ahead of the Group of 20 Summit.
The most-active cotton contract on ICE Futures US, the third-month December contract, settled up 0.34 cent, or 0.51%, at 67.16 cents per lb.
It traded within a range of 66.71 and 67.59 cents a lb.
China and the United States, the world's two largest economies, have agreed to revive trade talks after a long lull in efforts to resolve a costly trade dispute that has put pressure on financial markets and damaged the global economy.
"Prices are consolidating between 64.50 and 68.50 cents. There is some optimism regarding the statements made by the US President Donald Trump yesterday but we are still a long way from a deal," said Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group.
Demand for cotton has suffered since last year due to lack of buying from China.
Meanwhile, the weekly export sales data from the US Department of Agriculture (USDA) is due on Thursday.
"There's large expectation for a relatively weak (export) sales," Rose said, adding supplies are tight and there is a lot of uncertainty around the new crops.
The USDA is expected to report its estimates for all cotton planted acres in the United States on June 28.
India's monsoon has progressed more slowly than usual after hitting the southern state of Kerala nearly a week late.
Total futures market volume fell by 19,407 to 27,016 lots. Data showed total open interest fell 4,459 to 180,266 contracts in the previous session.
Certificated cotton stocks deliverable as of June 18 totalled 95,036 480-lb bales, down from 95,526 in the previous session.
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