Cotton rises 1% as investors await USDA's WASDE report

Feb 11 (Reuters) - ICE cotton futures rose 1% on Tuesday, helped by a lower dollar and as investors squared short positions in the run-up to a federal monthly supply-demand report from the U.S. Department of Agriculture.

Cotton contracts for March CTc1 rose 0.67 cent, or 1.01%, at 67.21 cents per lb at 10:28 a.m. ET (1528 GMT).

"I think it's some short covering before the WASDE report coming out later today. Some fear of a potentially bullish report. The market has been sold down pretty heavily," said Jack Scoville, vice president at Price Futures Group.

Investors now await the U.S. Department of Agriculture's World Agricultural Supply and Demand Estimates report, expected at 12:00 p.m. ET, for further insights into the market.

The U.S. dollar snapped a three-day rising streak as markets became increasingly numb to President Donald Trump's tariff threats, while turning their attention to testimony from Federal Reserve Chair Jerome Powell during the day and inflation data on Wednesday. USD/

A weaker U.S. dollar makes cotton more affordable for overseas buyers.

Chicago corn, wheat and soybean futures edged up as traders adjusted positions before a world crop report from the U.S. government, while waiting to see if the latest tariffs measure would bring fallout for agricultural trade. GRA/

Oil prices were higher amid concerns over Russian and Iranian oil supplies and sanctions threats, despite worries that escalating trade tariffs could dampen global economic growth. O/R

Higher oil prices make cotton-substitute polyester more expensive.