Cotton Futures Drop as U.S. Exports Tumble; Orange Juice Gains
Cotton futures fell for the fourth straight session as export sales tumbled from the U.S., the world’s largest shipper. Orange juice rose.
Fiber sales plunged 56 percent in the week ended Oct. 27 to 170,930 bales from a week earlier, the U.S. Department of Agriculture said today. The agency said on Oct. 12 that production will be 16.608 million bales in the harvest that started in August, raising the forecast for the third straight month.
There was “a bit of pressure from the export numbers,” Chris Kramedjian, a senior risk-management consultant at INTL FCStone in Nashville, Tennessee, said a telephone interview. “As the new harvest comes in, we will also see more pressure. The volume is thin, but we continue to see lack of demand.”
Cotton futures for December delivery declined 0.2 percent to settle at 98.12 cents a pound at 2:38 p.m. on ICE Futures U.S. Earlier, the fiber touched 97.3 cents, the lowest for a most-active contract since Oct. 24. This week, the commodity has dropped 6 percent, heading for the biggest drop since the period ended Sept. 23.
Prices have tumbled 55 percent form a record $2.197 on March 7 as demand eased in China, the world’s biggest consumer.
Orange-juice futures for January delivery rose 0.2 percent to $1.719 a pound in New York, the third straight gain. The price has climbed 5.1 percent this year.
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