Nov. 2 (Bloomberg) -- Cotton futures touched a two-week high, before settling unchanged, as speculators increased buying and a weaker dollar enhanced the appeal of fiber from the U.S., the world’s biggest exporter. Orange juice fell.

Hedge funds, large speculators and index funds added to their net-long positions in cotton futures, or bets prices will rise, by 4.6 percent in the week ended Oct. 27, data from the U.S. Commodity Futures Trading Commission show. The dollar fell as much as 0.8 percent against the euro today. Cotton is up 38 percent in 2009 as the dollar lost 5.4 percent versus the euro.

Cotton got a lift from “some speculators in there buying contracts,” said Andy Ryan, a risk-management consultant at broker FCStone Group Inc. in Nashville, Tennessee. “Within the investment community, it’s still seen as a hedge against the weaker dollar.”

Cotton futures for December delivery settled at 67.64 cents a pound on ICE Futures U.S. in New York. Earlier, the price rose as much as 2.4 percent to 69.26 cents, the highest for the most- active contract since Oct. 15.

The rise in cotton is “more of a technical move than a demand-driven move,” Ryan said. The weakness in the dollar is also improved the demand outlook for U.S. supplies, making raw materials priced in the currency less expensive for overseas buyers, he said.

In another ICE market, orange-juice futures for January delivery fell 4.5 cents, or 3.9 percent, to $1.113 a pound. The price has gained 64 percent in 2009 on signs that output will drop in Florida, the largest producer of oranges behind Brazil.

To contact the reporter on this story: Elizabeth Campbell in New York at ecampbell14@bloomberg.net

Last Updated: November 2, 2009 16:38 EST