An exchange traded note following cotton futures rallied 7% early Wednesday in the commodities sector while the dollar weakened.
The $285 million iPath Dow Jones-UBS Cotton Subindex Total Return ETN (NYSEArca: BAL) was up more than 7% in premarket action as gold also traded to the upside. [Oil, Metals And Corn Lead Commodity ETF Rally.]
Investors kept bidding commodity prices higher while PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) fell close to its 52-week low. The exchange traded fund (ETF) is pegged to the greenback’s movements against a basket of foreign currencies.
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