Cotton Rises to Eight-Week High on China; Sugar, Coffee Climb
Cotton rose to the highest price in almost eight weeks amid an improving demand outlook in China, the world’s largest consumer. Sugar and coffee gained, while orange juice and cocoa fell.
China’s manufacturing is expanding at a faster pace this month, a preliminary reading for a purchasing managers’ index released by HSBC Holdings Plc and Markit Economics showed Dec. 14. The country plans to increase urbanization, the state-run Xinhua News Agency reported yesterday after the annual central economic work conference. Last week, the U.S. Department of Agriculture raised its forecast for global cotton demand.
“Good economic data from China helped demand ideas,” Jack Scoville, a vice president for Price Futures Group in Chicago, said today in a report. “Some leftover bullish sentiment from the USDA report” also supported prices, he said.
Cotton for March delivery increased 1.1 percent to 75.91 cents a pound at 11:42 a.m. on ICE Futures U.S. in New York, after reaching 76.25 cents, the highest since Oct. 23. Through Dec. 14, cotton fell 18 percent this year as global inventories expanded.
Raw-sugar futures for March delivery climbed 1.8 percent to 19.35 cents a pound in New York, after touching 19.38 cents, the highest since Dec. 7. The commodity has dropped 17 percent this year amid forecasts for record output in Brazil, the top producer.
Arabica-coffee futures for March delivery gained 1.5 percent to $1.453 a pound on ICE.
Orange-juice futures for March delivery fell 0.7 percent to $1.372 a pound in New York, while cocoa futures for March delivery dropped 0.5 percent to $2,423 a metric ton.
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