Cotton Futures Rise on U.S. Crop Concerns; Sugar, Coffee AdvanceMarvin G. Perez
Cotton futures rose for a third session on speculation that planting delays caused by rain will curb output in the U.S., the world’s biggest exporter. Sugar and coffee also gained. Orange juice and cocoa slid.
This week, wet weather will delay sowing of cotton fields in Tennessee, Alabama, Georgia, North Carolina and South Carolina, Maryland-based Commodity Weather Group LLC said. Light showers probably won’t aid crop prospects in west Texas, the top-growing region, after light snow last week followed dry conditions. Through April 28, 14 percent of the U.S. crop was planted, compared with 25 percent a year earlier.
“The first weather scare of the planting season across the water-soaked mid-South and Southeast” is supporting prices, O.A. Cleveland, an agricultural economics professor at Mississippi State University in Starkville, said in a report. December futures “will tend to move higher given the current planting schedule,” he said.
Cotton for July delivery jumped 1.1 percent to settle at 87.39 cents a pound at 2:30 p.m. on ICE Futures U.S. in New York. The fiber rallied 3.1 percent in the previous two sessions.
Raw-sugar futures for July delivery climbed 1.6 percent to 17.81 cents a pound, the largest gain since April 16.
Arabica-coffee futures for July delivery increased 0.6 percent to $1.4175 a pound, the third consecutive advance.
Orange-juice futures for July delivery tumbled 2.3 percent to $1.407 a pound, the first decline since May 1.
On May 10, the U.S. Department of Agriculture will update its estimate for the orange crop in Florida, the world’s biggest after Brazil. The agency will also issue its first forecast for U.S. cotton output in the season starting Aug. 1.
Cocoa futures for July delivery fell 0.6 percent to $2,402 a metric ton.
London’s NYSE Liffe exchange is shut for a holiday.