ICE cotton futures steadied on Monday, buoyed by gains in oil markets, while investors squared positions in the run up to a federal planting intentions report this week.
* Cotton contract for May (CTc1) rose 0.37 cent, or 0.4%, to 91.9 cents per lb by 11:57 a.m. ET (1557 GMT). The contract earlier hit its lowest since Feb. 21.
* “At the end of this week, which is the end of the month and the quarter, we have several of these big funds that are short covering ahead of planting intentions report” said Keith Brown, principal at cotton broker Keith Brown and Co, in Georgia.
* The U.S. Department of Agriculture (USDA) will release the planting intentions report at noon EDT (1600 GMT) on Thursday.
* Support also spilled over from oil prices, which rose over 1%, as hostilities intensified between Russia and Ukraine and in the Middle East.
* Higher oil prices make cotton-substitute polyester more expensive.
* In the grains market, Chicago wheat futures hit their highest in around three weeks amid intensified tensions in the Black Sea region, while soybeans rose and corn fell.
* Limiting further gains in the natural fiber, the dollar edged 0.2% higher. A stronger greenback makes U.S. cotton more expensive for buyers holding other currencies.
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