Cotton futures rose for the fifth time in six sessions after a U.S. government report showed world stockpiles will be smaller than previously forecast. Orange juice was unchanged.
Global inventories of cotton on July 31 will total 51.91 million bales, down from the previous estimate of 52.66 million, the U.S. Department of Agriculture said today. World demand will be 115.22 million bales, compared with the agency’s August estimate of 115.18 million, the USDA said.
“For those of us who expected a bearish report, we were pleasantly surprised,” Sharon Johnson, a senior analyst at Penson Futures in Atlanta, said in a report after the USDA figures were released. “The reduction in world carryout is friendly and possibly bullish.”
Cotton for December delivery climbed 0.42 cent, or 0.4 percent, to settle at $1.1229 a pound at 2:35 p.m. on ICE Futures U.S. in New York. The fiber gained 5.6 percent last week.
Orange-juice futures for November delivery were unchanged at $1.687 a pound in New York. The beverage has gained as much as 11 percent since reaching a five-month low on Aug. 11.