Cotton prices rose from a five-month low as a rally in equity markets in Asia and Europe spilled over to commodities. Orange juice also gained.
The Reuters/Jefferies CRB Index of 19 raw materials gained as much as 0.8 percent. The Stoxx Europe 600 Index rose 1.2 percent, its biggest gain since July 13, while Hong Kong’s Hang Seng Index advanced 1.1 percent on earnings reports.
“Cotton has risen along with other commodities because of outside market influence,” said Mike Stevens, an independent trader in Mandeville, Louisiana. “The fundamentals have not changed.”
Cotton for December delivery rose 0.92 cent, or 1.3 percent, to 73.93 cents a pound on ICE Futures U.S. in New York. Yesterday, the price touched 72.96 cents, the lowest level since Feb. 10. The most-active contract has dropped 2.2 percent this year.
As of July 18, 68 percent of the crop in U.S., the world’s largest exporter, was in good to excellent condition, up from 45 percent a year earlier, the Department of Agriculture said.
“The market will likely remain range-bound in the short term,” Stevens said. Cotton may trade from 73 cents to 75 cents over the next few weeks, he said.
Orange-juice futures for September delivery gained 1.55 cents, or 1.1 percent, to $1.434 a pound. The price has climbed 11 percent this year.