Cotton Futures Post Biggest Three-Day Slump Since 2011Marvin G. Perez
Cotton tumbled, capping the biggest three-day slump since November 2011, as dry weather forecast for the Southeast aided crop prospects in the U.S., the world’s top exporter. Cocoa, sugar and coffee fell, while orange juice rose.
Southeast cotton-growing areas will be drier Aug. 27 to Aug. 31 after wet conditions this week, particularly in Georgia and South Carolina, Commodity Weather Group LLC in Bethesda, Maryland, said in a report. About 46 percent of the U.S. crop was rated good to excellent as of Aug. 18, up from 41 percent a year earlier, the government said on Aug. 19.
“They’ve been getting way too much water, so any drying in the Southeast could be extremely bearish,” Michael Smith, the president of T&K Futures & Options in Port St Lucie., Florida, said in a telephone interview.
Cotton for December delivery tumbled 5.2 percent to settle at 84.24 cents a pound at 2:38 p.m. on ICE Futures U.S. in New York, the biggest drop for a most-active contract since June 21, 2012. In three days, the fiber plunged 9.7 percent, the most since Nov. 21, 2011.
Today, the price touched 84 cents, the lowest since July 18. Losses accelerated after cotton fell below 86.5 cents, Sharon Johnson, a senior market specialist at KCG Futures in Roswell, Georgia, said in an e-mail.
On Aug. 16, the fiber reached 93.72 cents, a five-month high.
Cocoa futures for December delivery fell 2.8 percent to $2,450 a metric ton, the biggest drop since June 13.
Scattered thunderstorms through tomorrow will bring as much as to 0.6 inch (1.5 centimeter) of rain a day to Ivory Coast, the biggest producer, easing dry conditions that have delay crop development, an AccuWeather forecast showed.
Raw-sugar futures for October delivery dropped 0.9 percent to 16.32 cents a pound. The price dropped for the fifth straight session, the longest slump in six weeks.
Exports from India, the second-largest producer, may increase following the rupee’s slump to a record against the dollar, the National Federation of Cooperative Sugar Factories Ltd. said. Brazil is the top shipper.
Arabica-coffee futures for December delivery slid 1.4 percent to $1.1715 a pound. Orange-juice futures for November delivery climbed 2.2 percent to $1.379 a pound.