Cotton Declines as U.S. Sales Are Canceled; Orange Juice Rises

0
128

Cotton futures fell the most in more than two weeks after a report showed overseas buyers scrapped orders for supplies from the U.S., the world’s biggest exporter. Orange juice rose.

In the week ended Aug. 18, canceled orders for upland cotton exceeded sales by 230,308 bales for the current crop year, the U.S. Department of Agriculture said today. A bale weighs 480 pounds (218 kilograms). That’s the ninth time in 10 weeks that there were more canceled orders than sales.

“Export sales are just dismal again, and there have been cancellations building,” Louis Barbera, a broker at VIP Commodities in New York, said in a telephone interview.

Cotton for December delivery fell 2 cents, or 1.9 percent, to settle at $1.0299 a pound at 2:36 p.m. on ICE Futures U.S. The drop was the biggest since Aug. 9. Cotton has tumbled 29 percent this year as demand slumped in China, the leading importer.

The export data may reflect a shift in orders to suppliers outside the U.S., Barbera said. InTexas, the biggest cotton- producing state, agriculture losses from a drought have reached a record $5.2 billion as farmers abandon sun-baked fields.

“The U.S. may not have the cotton to ship, so you’re getting cancellations,” Barbera said.

Orange-juice futures for November delivery rose 0.5 cent, or 0.3 percent, to $1.6075 a pound on ICE. The commodity climbed 16 percent in the past year.

Source: http://www.bloomberg.com/news/2011-08-25/cotton-declines-as-u-s-sales-are-canceled-orange-juice-rises.html

LEAVE A REPLY