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Cotton Has Biggest Monthly Gain Since June 2007 on Chinese Crop Concerns
Cotton futures rose, capping the biggest monthly gain since June 2007, on concern that adverse weather may have damaged crops in China, the world’s biggest user. Orange juice climbed.
A cold spell earlier this week may hurt the cotton crop, the China Meteorological Center said on Oct. 25. Prices have surged 66 percent this year as global supplies trailed demand. Stockpiles in the U.S., the world’s biggest exporter, will drop 8.5 percent in the year that began Aug. 1, the Department of Agriculture said on Oct. 8.
“The China story continues to be bullish,” said Sharon Johnson, a senior analyst at First Capital Group LLC in Atlanta. “Demand has not weakened, even at these high prices.”
Cotton for December delivery rose 3.58 cents, or 2.9 percent, to settle at $1.2526 a pound at 2:59 p.m. on ICE Futures U.S. in New York.
On Oct. 26, the price reached a record $1.305. The fiber gained 23 percent this month.
The crop in Texas, the largest U.S. producer, suffered little damage after rain and hail fell last week, industry analyst Cotlook Ltd. said in a report dated Oct. 27.
“Some fields were damaged from the hail, but other fields had not been treated with harvest aids yet and still had leaves, resulting in less damage to the crop,” Birkenhead, England- based Cotlook said.
Orange-juice futures for January delivery added 1.9 cents, or 1.2 percent, to $1.577 a pound in New York. The commodity climbed 0.5 percent this month and is up 22 percent this year.
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