Cotton Falls to One-Week Low on Budget Impasse; Sugar Climbs
Cotton fell to the lowest in a week on concern that an impasse in U.S. budget talks will slow the economy, reducing demand for the fiber. Orange juice, coffee and cocoa also dropped. Sugar rose.
Congressional leaders plan to meet with President Barack Obama today, and House Republicans said they will convene Dec. 30, as lawmakers seek to avoid the more than $600 billion in spending cuts and tax increases known as the fiscal cliff. Through yesterday, cotton slumped 17 percent this year as global inventories swelled.
“Fiscal cliff jitters are weighing on the market,” Keith Brown, the president of Keith Brown & Co., a broker in Moultrie, Georgia, said in a telephone interview.
Cotton for March delivery declined 1.1 percent to 75.18 cents a pound at 11:29 a.m. on ICE Futures U.S. in New York after touching 75.17 cents, the lowest for a most-active contract since Dec. 20.
Orange-juice futures for March delivery lost 2 percent to $1.292 a pound on ICE.
Arabica-coffee futures for March delivery slid 0.2 percent to $1.476 a pound in New York.
Cocoa futures for March delivery fell 0.1 percent to $2,253 a metric ton on ICE.
Raw-sugar futures for March delivery rose 0.4 percent to 19.52 cents a pound in New York.
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