Cotton Posts Biggest Loss in Three Weeks; Cocoa, Sugar DeclineLuzi Ann Javier
Cotton fell the most in three weeks as inventories monitored by ICE Futures U.S. expanded to the biggest in more than three months. Arabica coffee and raw sugar dropped, while orange juice and cocoa gained.
Cotton stockpiles yesterday rose for a fourth session to the highest since July 24. About 56 percent of the crop in the U.S., the largest shipper, was collected as of Nov. 10, up from 43 percent a week earlier, the government said. China, which has about 60 percent of world stockpiles, may start selling some of its supply this year or in 2014, Gao Fang, the secretary general of the China Cotton Association, said in October.
“The rising certified stocks, at this point of the season, seems to convey that merchants do not see strong demand as they look forward to the spring months,” Louis Rose, the owner of Risk Analytics LLC, an industry consultant in Memphis, Tennessee, wrote in an e-mail.
Cotton futures for March delivery fell 1.4 percent to settle at 77.46 cents a pound at 2 p.m. on ICE in New York, the biggest loss for a most-active contract since Oct. 24. Trading was 88 percent more than the 100-day average, according to data compiled by Bloomberg.
Arabica-coffee futures for March delivery slipped 0.3 percent to $1.0565 a pound, after touching $1.053, the lowest in a week.
Raw-sugar futures for March delivery declined 0.9 percent to 17.64 cents a pound on ICE, the fourth straight decline and the longest slump for a most-active contract since Aug. 30.
Orange-juice futures for January delivery gained 2.2 percent to $1.366 a pound in New York. Cocoa futures for March delivery added 0.6 percent to $2,680 a metric ton.