Concerns for Declining Supplies Boost Coffee, Cotton & Wheat
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.
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