2010-12-01 11:45:19 GMT (Futures Pros)
Futures Pros – Cotton futures were up for the third consecutive day on Wednesday, rising to hit a 7-day high, amid concerns over tightening global supplies, while prices were also supported by a weaker U.S. dollar.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD 1.1889 a pound during European morning trade, jumping 1.46%.
It earlier rose to USD 1.1911 a pound, its highest price since November 22.
Cotton prices were boosted after Indian Agricultural Minister Sharad Pawar said earlier in the day that the country would decide by December 3 if to continue its restriction on cotton exports. In September, the country restricted exports until the end of the year to 5.5 million bales.
Last week, the Confederation of Indian Textile Industry urged the country to extend its cotton export restriction into 2011, as the country faced a shortage in cotton supplies.
Elsewhere, the U.S. Department of Agriculture said in its weekly cotton inventory report that U.S. stockpiles in the week ended November 28 stood at 92,747 bales, down 91% from the 2010 high in June.
India is the world’s second-largest cotton grower, while the U.S. is the world’s third-largest producer and the world’s largest exporter of the fiber.
Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.59% during European morning trade.
A weaker dollar enhances the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, coffee futures for March delivery gained 0.36% to trade at USD 2.0148 a pound, wheat futures for March delivery rallied 3.48% to trade at USD 7.1375 a bushel, while corn futures for March Delivery jumped 1.29% to trade at USD 5.5112 a bushel during European morning trade.
No comments:
Post a Comment