cotton futures

cotton futures

August 7th, 2014

Cotton production in Australia is set to plummet as much as 50 percent next season as drought curbs water supply in the world’s third-biggest exporter, according to growers and shippers.

Output may be between 2 million and 2.5 million bales in 2014-2015 from about 4 million bales this year, according to Cotton Australia, the Sydney-based producers’ group. Production may total about 2.25 million bales, according to the Australian Cotton Shippers Association, which promotes exports. An Australian bale weighs 227 kilograms (500 pounds).

Cotton futures slumped 24 percent this year and are the biggest losers in the Bloomberg Commodity Spot Index as output in the U.S., the largest exporter, is poised to climb, adding to record global reserves. Australian farmers may plant less after a record drought in Queensland and dry conditions in parts of New South Wales, the biggest producer, according to Cotton Australia Chief Executive Officer Adam Kay.

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cotton futures

cotton futures

August 03, 2014

Cotton futures rose on Friday, as bargain hunting by cotton mills and short-covering by investors lifted the fibre market from a five-year low after three days of declining prices. The most-active December cotton contract on ICE Futures US finished up 0.4 cent at 63.27 cents a lb. The session low was 62.02 cent, the lowest since October 2009 for a benchmark second month contract in US cotton on a continual basis.

December cotton has lost 33 percent over the past two months as investors dumped futures on fears of excess supply. “We’re getting to a point where the mills are stepping up to buy fibre here,” said Jack Scoville, vice president at Price Futures Group in Chicago. ‘If you’ve been short for a while, you’re taking some money off the table here,” he said.

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cotton futures

cotton futures

July 24th, 2014

Cotton production in India, the world’s second-largest grower, is set to climb to an all-time high as delays in monsoon rains prompt farmers to switch from soybeans and peanuts, the nation’s biggest cotton trader said. Futures in New York fell.

The harvest is poised to expand as much as 2.6 percent to 40 million bales of 170 kilograms (375 pounds) each in the year starting Oct. 1, according to B.K. Mishra, chairman of the Cotton Corp. of India. While the area is increasing from 11.7 million hectares (28.9 million acres), the harvest will be delayed by the worst start to the monsoon since 2009, he said. Cotton Corp. buys the crop at government-set minimum prices.

Cotton futures have dropped for 11 straight weeks in New York, capping the longest slump in 55 years, on concern that global inventories are climbing as demand slows from China, the largest user. A higher crop in India, the top shipper after the U.S., may curb any rally in prices that fell 20 percent in 2014.

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