Cotton Rises to 1-Week High on U.S. Exports; Sugar, Coffee Gain
Cotton rallied to a one-week high on signs of improved demand for U.S. exports. Sugar, coffee and orange juice also advanced, while cocoa fell.
Export sales of upland cotton in the month ended Jan. 3 averaged 249,000 running bales a week, more than four times the average of a year earlier, data from the U.S. Department of Agriculture showed today. Domestic production in the 12 months ended July 31 probably was less than the government said last month, according to analysts in a Bloomberg survey. The USDA will update its estimate today at noon in Washington.
“The latest U.S. export-sales report confirmed this encouraging pace of business,” Peter Egli, a Chicago-based risk manager for Plexus Cotton Ltd., said in an e-mailed report. “We remain friendly on prices in the longer run.”
Cotton for March delivery rose 0.8 percent to 75.79 cents a pound at 10 a.m. on ICE Futures U.S. in New York, after touching 76.03 cents, the highest since Jan. 3. Prices as of yesterday still were down 22 percent from a year earlier as demand slowed from China.
Also on ICE, raw-sugar futures for March delivery rallied 0.1 percent to 18.98 cents a pound, heading for a third straight gain. Arabica-coffee futures for March delivery advanced 0.3 percent to $1.5005 a pound. Orange-juice futures for March delivery rose 0.2 percent to $1.126 a pound, poised for a third straight increase.
Cocoa future for March delivery fell 0.3 percent at $2,263 a metric ton, after fluctuating between gains and loses.
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