Cotton Climbs on Rising Demand; Sugar, Orange Juice, Coffee Gain
Cotton rose for the eighth time in nine sessions after Cotlook Ltd. cut its forecast for a global surplus on increasing consumption. Sugar, orange juice and coffee also gained, while cocoa fell.
Cotlook, the publisher of a benchmark cotton index, said last week world supplies will outpace demand by 3.53 million metric tons in the year that started Aug. 1, down from a December forecast of 3.62 million. Hedge funds are the most bullish on cotton in 23 months, U.S. government data show.
“My guess is the speculators will get even longer,” Sharon Johnson, a senior cotton specialist at Roswell, Georgia- based Knight Futures, said in an e-mail. “I expect prices to move higher over the next several weeks.”
Cotton for March delivery rose 0.4 percent to 80.83 cents a pound at 10:13 a.m. on ICE Futures U.S. in New York. Through Jan. 25, prices climbed 7.2 percent in January, heading for the biggest monthly gain since August, on signs of higher demand in China, the world’s biggest consumer.
Hedge funds raised their net-long positions by 67 percent to 41,605 futures and options contracts in the week ended Jan. 22, the highest since Feb. 1, 2011, U.S. Commodity Futures Trading Commission data show.
Also in New York, raw-sugar futures for March delivery jumped 2.1 percent to 18.76 cents a pound.
Orange-juice futures for March delivery advanced 1.3 percent to $1.1485 a pound on ICE, heading for the biggest gain since Jan. 18.
Arabica-coffee futures for March delivery climbed 0.2 percent to $1.4865 a pound in New York.
Cocoa futures for March delivery slid 0.3 percent to $2,166 a metric ton on ICE.
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