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;))