Cotton Futures Rise on Texas Crop Concern; Orange Juice Gains

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Cotton rose to a three-week high as persistent drought conditions devastated crops in Texas, the largest U.S. grower. Orange-juice futures advanced.

In the week ended July 31, about 57 percent of Texas cotton crops were in poor or very poor condition, Department of Agriculture datashow. Prices touched a 10-month low last week partly on bets that Tropical Storm Don would bring beneficial rain. The storm “did not bring any measurable rain” and “the ground is still bald and scorched,” Mile Gibbs, an agent for Texas AgriLife Extension Service, said in an e-mailed report.

“We’re still looking at a pretty big problem,” Jack Scoville, a commodity analyst at Price Futures Group Inc. in Chicago, said in a telephone interview. “No relief from the drought appears likely this week after the tropical storm from last week did little good.”

Cotton for December delivery gained 1.8 cents, or 1.7 percent, to settle at $1.0685 a pound at 2:38 p.m. on ICE Futures U.S. in New York. Earlier, the fiber touched $1.0862, the highest since July 14.

Orange-juice futures for September delivery rose 0.95 cent, or 0.5 percent, to settle at $2.0165 a pound on ICE.

Source: http://www.bloomberg.com/news/2011-08-02/cotton-futures-rise-on-texas-crop-concern-orange-juice-gains.html

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