Cotton rises over 1% on higher oil, speculative buying
Jan 2 (Reuters) - ICE cotton futures rose over 1% on Thursday, supported by speculative buying after the contract had been down for the last two consecutive sessions, while higher crude oil prices also lent support.
* Cotton contracts for March CTc1 rose 0.73 cent, or 1.07%, to 69.13 cents per lb at 10:49 a.m. ET (1549 GMT).
* Cotton futures recorded their third consecutive annual loss on Tuesday.
* "I think a lot of it has to do with speculative buying. The market's been down a very long time and it's showing a little recovery here," said Jack Scoville, vice president at Price Futures Group, adding that crude oil is also helping cotton today.
* Oil prices rose as investors returned for the first trading day of the new year with an optimistic eye on China's economy and fuel demand after a pledge by President Xi Jinping to promote growth. O/R
* Higher crude oil prices make cotton-substitute polyester more expensive.
* Cotton, having formed a double bottom in August and November last year, is expected to eventually test the 70-cent area, said Rogers Varner, president of Varner Brokerage.
* Elsewhere, Wall Street's main indexes opened higher on the first trading session of 2025, with investors hoping a fresh political landscape and more interest rate cuts will enhance corporate and economic performance. .N
* The U.S. Department of Agriculture's weekly export sales report is delayed until Friday due to Wednesday's New Year's Day holiday.
(Reporting by Anmol Choubey in Bengaluru; Editing by Shreya Biswas)
((anmol.choubey@thomsonreuters.com;))
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