Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Cotton Rallies as USDA Boosts Forecast of Imports by China Mills

Feb. 8 (Bloomberg) -- Cotton futures rallied the most in a week after the U.S. Department of Agriculture boosted its forecast of imports by China, the world’s largest user.

China will import 14 million bales in the year ending July 31, or 12 increase more than the 12.5 million expected in January, the USDA said today in a report. A bale of cotton weighs 480 pounds. Prices that tumbled last year to a 32-month low have gained 10 percent this year on signs of improved demand and smaller global crops, including in the U.S.

“Higher Chinese imports mean cheaper stocks in the rest of the world have become a lot tighter, which is bullish,” Peter Egli, the director at Chicago-based Plexus Cotton Ltd., said today by telephone.

Cotton for March delivery rose 1.6 percent to settle at 82.67 cents a pound at 2:30 p.m. on ICE Futures U.S. in New York, the biggest gain since Jan. 29.

Prices fell 1.9 percent this week through yesterday on signs of slowing demand for supplies from the U.S., the world’s largest exporter. Cotton has slumped 62 percent since reaching a record $2.197 on March 7, 2011.

“The USDA forecasts suggest Chinese import pace will not fall off, and this is a key supportive factor for old-crop prices,” analysts at Rabobank including Luke Chandler said in an e-mailed report.

To contact the reporter on this story: Oliver Renick in Chicago at orenick1@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.