Cotton Falls on Concern Demand May Slow; Orange Juice Falls

Cotton Falls on Concern Demand May Slow; Orange Juice Falls
February 05, 2010, 03:39 PM EST

By Sonja Elmquist Feb. 5 (Bloomberg) -- Cotton futures dropped to the lowest prices  
since November as a rally in the dollar eroded the appeal of  
commodities and slumping equity markets revived concern that the  
economic recovery may stall, slowing demand for clothing.
The dollar jumped to the highest level against major currencies since  
July. The Standard & Poor’s 500 Index fell, after a 3.1 percent drop  
yesterday that was the biggest decline since April, and the Reuters/ 
Jefferies CRB Index of 19 raw materials slipped to the lowest level  
since October. Cotton prices have plunged 13 percent from an 18-month  
high on Jan. 4.
“People are scared from yesterday,” said Mike Stevens, an independent  
analyst and trader in Mandeville, Louisiana. “I have low confidence on  
saying anything fundamental is going to affect this market right now.  
Cotton can’t go anywhere by itself.”
Cotton futures for March delivery fell 2.37 cents, or 3.4 percent, to  
66.62 cents a pound on ICE Futures U.S. in New York, after touching  
66.55 cents, the lowest price since Nov. 6. Futures dropped 3.5  
percent for the week, the fifth straight decline.
Prices jumped 54 percent last year as adverse weather hampered  
harvests and damaged crop quality in the U.S., the world’s biggest  
exporter of the fiber.
The National Cotton Council is scheduled to publish its annual survey  
of U.S. planting intentions today on its Web site.
In another ICE market, orange-juice futures for March delivery fell  
3.3 cents, or 2.4 percent, to $1.3395 a pound, after touching $1.334,  
the lowest price since Jan. 20. The contract slipped 1.6 percent for  
the week, the second straight decline.


--Editors: Steve Stroth, Ted Bunker.

To contact the reporter on this story: Sonja Elmquist in Chicago at  
+1-312-443-5925 or selmquist@bloomberg.net.

To contact the editor responsible for this story: Steve Stroth at  
+1-312-443-5931 or sstroth@bloomberg.net.

Source:

http://www.businessweek.com/news/2010-02-05/cotton-falls-on-concern-demand-may-slow-orange-juice-falls.html