NY cotton down again as investors await USDA, Fed decision

NEW YORK, Sept 11 (Reuters) - U.S. cotton futures fell on
Tuesday for the second day, in thin and cautious dealing ahead
of government crop data and a Federal Reserve policy decision,
traders said.
The U.S. Department of Agriculture is due to release on
Wednesday its September crop production report, which market
participants rely on to gauge supply and demand in cotton for
the rest of the year.
Investors also were cautious as they waited to see whether
the Federal Reserve will end its policy meeting on Thursday with
announcement of a new U.S. economic stimulus.
"Everyone's holding their breath to see what the USDA report
will contain to-morrow for cotton, and what the Fed will decide
on Thursday," said Sharon Johnson, cotton specialist for Knight
Futures in Atlanta, Georgia.
"Between the little that was going, there was more selling
than buying, resulting in the lower price," she said.
U.S. cotton's benchmark December futures contract in New
York fell 0.7 cents to close at 74.93 cents per lb, after
moving between 76.28 and 74.85 cents.
Most other commodities rose, as investors bet the Fed will
act to rescue the economy, lifting prices broadly for the fourth
straight session. A weak dollar also provided
inflationary support to commodities after Moody's hinted at a
possible U.S. credit rating downgrade.

(Reporting by Barani Krishnan; Editing by David Gregorio)