ICE cotton futures jumped over 3 percent on Wednesday and hit a near five-month high on expectations of improvement in demand for the natural fibre and on an easing dollar. The March cotton contract on ICE Futures US touched a session high of 74.23 cents per lb, a price not seen since August 9. It closed with the biggest one-day percentage gain for the commodity since September 1.
"The view for global demand has improved a lot. People are also seeing a higher than expected demand from China,"
ICE cotton futures jumped over 3 percent on Wednesday to hit a near five-month high, amid a weaker dollar. The March cotton contract on ICE Futures US touched a session high of 74.23 cents per lb, a peak since August 9, 2016. The dollar fell against the euro and yen on Wednesday, backing off a 14-year high against a basket of currencies with investors cautious about increasing bets on the greenback without fresh clues on the US economy and the timing of interest rate increases.
Source: Reuter