Commodity Blog

Commodity Prices – Cotton

Soybeans gained today on speculation that dry weather will harm crops in Argentina. Soybeans also declined as a stronger dollar diminished demand for commodities. March futures for soybean delivery went up $0.0175 (0.1 percent) to $13.0775 per bushel by 13:15 on CBoT.

Sugar rallied today for a fourth consecutive day on speculation that demand may outpace supply even though India is planning to resume export. Consumption of sugar may reach 165.3 million metric tons, almost 3 million tons more than production. The sweetener more than doubled from the level in May, which was the lowest in more than a year.

Cotton dropped today because of high prices and increasing plating in the US. Acreage may increase by at least 10 percent in the Southwest US. March delivery for cotton dropped $0.0235 (1.6 percent) to $1.4214 as of 14:46 on ICE.

Soybeans fell today on speculation that rains will boost crops in Argentina and Brazil. Analysts say that there’s no reason to hold long positions without apparent threat to the harvest. January delivery for soybeans slipped $0.085 (0.7 percent) to $12.73 per bushel by 13:15 on CBoT.

Wheat futures slid after a report showed that world and US inventories increased. Global stockpiles will total 176.72 million metric tons by May 31st, that’s 2.4 percent higher than forecast in the previous month. March futures for wheat delivery dropped $0.13 (1.6 percent) to $7.755 per bushel at 13:15 on CBoT.

Cotton futures climbed to the highest level in a month after US government cut its forecast for inventories to the lowest level in 14 years. US stockpiles in the year ending July 31st will total 1.9 million bales, 14 percent down from the November forecast and the lowest since at least May 1996. March futures for cotton delivery gained $0.0102 (0.8 percent) to $1.3697 per pound as of 14:40 on ICE.

Wheat futures fell today on speculation that floods in Australia is over and the damage may be already priced in. Still, the harm was done and prices may yet rise again if more damage was done than was estimated. March futures for wheat delivery fell $0.015 (0.2 percent) to $7.8325 per bushel as of 12:03 on CBoT.

Gold fell from a record and silver declined today as the dollar gained, decreasing attractiveness of the precious metals as an alternative investment. US currency gained for a third consecutive day against the basket of six major currencies on speculation that extended tax cuts will support US economy. February futures for gold delivery slipped as much as $26.70 (1.9 percent) to $1,382.30 at 12:43 on COMEX. March futures for silver delivery slid $1.422 (4.8 percent) to $28.355 per ounce.

Cotton futures gained as demand in China may grow. Global demand may also outpace supply. March delivery for cotton rose $0.0176 (1.4 percent) to $1.3213 per pound by 13:22 on ICE.

Wheat jumped today as the global recovery improves an outlook for demand, while adverse weather in the US, the largest world grower, may diminish supplies. As of November 21st about 47 percent of the US wheat crop was in good or excellent condition, compared with 64 percent in the previous year. March futures for wheat delivery gained $0.045 (0.7 percent) to $6.8525 per bushel as of 13:15 on CBoT.

Cotton futures advanced the most in nine months on speculation that demand in China, the largest consumer in the world, will be sustained. Cotton output in China may drop as much as 5.5 percent this year to 6.36 million metric tons as adverse weather hurt crops. March delivery for cotton went up $0.048 (4.3 percent) to $1.1659 by 14:59 on ICE.

Crude oil gained today as decline of unemployment claim in the US signaled that economic recovery is accelerating, which may lead for increasing demand for the fuel. US unemployment claims fell from 441,000 to 407,000 last week. January delivery for crude oil added $2.61 to $83.86 per barrel on NYMEX.

Sugar rose on concerns that adverse weather in India, the second largest producer in the world, would curb supplies. Sugar production in the state of Maharashtra, India’s biggest producer of refined sugar, declined 29 percent from October 1st to November 20th, compared to the same period in the previous year, as heavy rainfall slowed the harvest. Sugar declined previously on concerns about sovereign-debt of European countries and conflict between North and South Korea. March delivery for raw sugar rose $0.0083 (3.1 percent) to $0.2733 per pound as of 14:00 on ICE.

Cotton dropped to the lowest level in a month as China tightened rules for bank credit in order to make it hard to speculate on agricultural markets and as the dollar rose. China attempts to prevent hoarding of products and artificial inflation of prices. The dollar surged after North and South Korea exchanged artillery fire, spurring demand for the US currency as a safe haven. March delivery for cotton fell 0.06 (5.1 percent) to $1.1179 per pound by 14:44 on ICE.

Cattle futures rallied to the highest level in 26 months on expectations that demand from meatpackers will increase ahead of holidays, such as Christmas and New Year. Wholesale choice beef rose to $1.5901 per pound at midday after it fell yesterday for the first time in five sessions. February futures for cattle delivery rose $0.00525 (0.5 percent) to $1.05025 per pound at 13:00 on the CME.

Corn, cotton and soybeans dropped today on speculation that China may take steps to cool its economy. China, the largest world user of soybeans and the second-biggest consumer of corn, ordered its banks to increase reserves to cut inflation and prevent asset-bubble. March futures for corn delivery dropped $0.21 (3.8 percent) to $5.3475 per bushel on CBoT as of 13:15. March futures for cotton delivery slipped $0.06 (4.6 percent) to $1.2315 per pound by 14:49 on ICE. January futures for soybean delivery went down $0.405 (3.3 percent) to $12.015 per bushel in Chicago.

Wheat reached the highest level in four weeks today on speculation that global supplies is shrinking. Analysts estimated before the government report tomorrow that US supplies of wheat will total 173.53 million metric tons on May 31st, 0.6 percent less than predicted in October. December futures for wheat delivery gained $0.075 (1 percent) to $7.3625 per bushel by 13:15 on CBoT.

Arabica coffee jumped to the highest level in 13 years today on forecast that excessive rains may disrupt supplies from Vietnam. Global output may also decline because of smaller harvest in Brazil, biggest grower in the world. December delivery for Arabica coffee rose $0.0295 (1.4 percent) to $2.081 per pound as of 14:00 on ICE.

Cotton advanced to a record for a fifth consecutive session after output in China declined, causing speculation that it’ll increase imports and that’ll put strain on global stockpiles. Output in China may decline 5 percent in the year beginning September 1st because of natural disasters. December delivery for cotton went up $0.04 (2.8 percent) to the record of $1.4623 per pound at 14:25 on ICE.

Hogs climbed today as demand for pork in the US is recovering. Analysts say that pork was oversold and now is returning to more “fair” price. December futures for hog settlement added $0.01 (1.5 percent) to $0.662 per pound at 13:05 on CME.

Corn and soybeans gained today for a second consecutive day on forecast that favorable weather will increase supplies. Rains in Brazil and Argentina should boost output. December futures for corn delivery slipped $0.015 (0.3 percent) to $5.7575 per bushel as of 13:15 on CBoT. January futures for soybean delivery slid $0.01 (0.1 percent) to $12.34 per bushel.

Cotton climbed to the record today as demand in China grows. Prices also surged on speculation that adverse weather will curb supplies. December delivery for cotton rose $0.05 (3.9 percent) to $1.3426 per pound by 15:20 on ICE, reaching the highest level in 140 years of trade.

Cattle futures gained on signs of increasing demand for U.S. beef. Wholesale beef, shipped by meatpackers in the week that ended yesterday, climbed as much as 44 percent to 43 million pounds, compared to 29 million pounds in the week earlier. October futures for cattle delivery rose $0.00875 (1 percent) to $0.92275 per pound on CME.

Cotton futures rebounded as the weaker dollar boosted demand for some commodities as an inflation hedge. The U.S. currency dropped to the lowest level in two months versus the basket of six currencies. December delivery for cotton gained $0.0086 (1.2 percent) to $0.7465 per pound on ICE Futures U.S.

Copper and aluminum prices rose after aluminum producer Alcoa Inc. reported that its earnings were higher than expected. Alcoa Inc. forecast that global aluminum demand would grow 12 percent in 2010. September futures for copper delivery added $0.0085 (0.3 percent) to $3.0175 per pound on COMEX. Aluminum rose 1.2 percent to $1,995 per metric ton on LME.

Cotton and soybeans dropped today on signs of increasing output. U.S. farmers planted cotton on the area, 19 percent wider compared to the previous year. The soybeans seeded area will be 1.8 percent wider compared to the last year and will reach the all-time record, while combine output of Brazil and Argentina will grow by 37 percent. December delivery for cotton slid $0.0051 (0.7 percent) to $0.7762 per pound as of 9:50 on ICE. November futures for soybean delivery slipped $00325 (0.4 percent) to $9.0875 per bushel by 11:03 on CBoT.

Raw sugar climbed to the weekly high level on forecast that output in India would be reduced by adverse weather. Production in Thailand may also fall; it expected to decline by 13 percent. October delivery for raw sugar rose $0.0041 (2.7 percent) to $0.1569 per pound as of 11:50 on ICE Futures U.S.

Copper rebounded today as the concern for the global recovery eased after the report about the increased manufacturing in the U.S. Chicago PMI index value of 59.1 in June indicated an increase, as figure above 50 signals about growth. September futures for copper delivery gained $0.0165 (0.6 percent) to $2.947 per pound at 12:20 on COMEX.