Cotton Is Little Changed as Trading Ebbs; Orange Juice Drops
Cotton futures were little changed as demand ebbed and the dollar rebounded. Orange juice also dropped.
The greenback rose against a basket of major currencies, eroding the appeal of U.S. exports. The dollar dropped in the previous four sessions. Estimated cotton-futures volume yesterday in New York was 8,587 contracts, compared with a daily average of 64,519 in the previous three months.
“Demand is still abysmal, and trading volumes are very light” before the holidays, Chris Kramedjian, a senior risk- management consultant at INTL FCStone in Nashville, Tennessee, said in a telephone interview. “With the dollar higher, people looking at the macroeconomic environment would sell this market.”
Cotton for March delivery rose 0.04 cent to 86.84 cents a pound at 10:28 a.m. on ICE Futures U.S. in New York. Earlier, the commodity dropped as much as 0.5 percent. The price dropped 0.3 percent yesterday. Before today, the fiber plunged 40 percent this year amid rising supplies and dwindling demand.
Orange-juice futures for March delivery declined 1.1 percent to $1.63 a pound. Before today, the price dropped 6.6 percent this month.
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