Commodity Blog

Posts Tagged ‘cotton’

Wheat slumped to the lowest this week as a rebound in the dollar causes demand for supplies from the U.S. to drop. The dollar jumped 0.7 percent against a basket of six major currencies. December futures for wheat delivery slid $0.0925 (2 percent) to $4.4825 per bushel by 10:32 on the Chicago Board of Trade.

Cotton prices dropped as the dollar gains, raising the cost to buyers using other currencies. Cotton rose previously because of heavy rains, threatening that rotting pods of fiber may reduce crop yields, and because farmers planted less cotton to grow more profitable grains and soybeans. December futures for cotton delivery fell $0.0112 (1.8 percent) to $0.6172 per pound as of 11:04 on ICE Futures U.S. in New York.

Gold gained in New York as the dollar declined, boosting the appeal of the precious metal as a hedge against inflation. The greenback fell 5.2 percent against the basket of six major currencies. December futures for gold December delivery gained $0.30 to $994.40 per ounce on the Comex division of the New York Mercantile Exchange.

Cotton prices slumped to the lowest in two weeks after an unexpected decline in consumer confidence in the U.S. caused speculation that the economic recovery may be slowing. Clothing sales go up when consumers are feeling confident and suffer when people are feeling a little less confident. Jobless rate in the U.S. is predicted to reach 10 percent this year. December futures for cotton delivery slid $0.0148 (2.4 percent) to $0.6142 per pound as of 11:42 on ICE Futures U.S. in New York.

Soybean harvest may rise to a record in Brazil, the second biggest soybean producer in the world, next year as declining prices for corn makes farmers shy away from planting it. Crop is also helped by the above-average rains in major producing regions. Forecast for soybean output this year, according to Brazil’s Agriculture Ministry, is 57.09 million metric tons on September 8th, compared to last month’s estimate of 57.11 million.

Corn gained on signs that smaller harvest in China and Argentina may boost demand for supplies from the U.S., the biggest producer and exporter in the world. Chinese Production may drop to 148.8 million metric tons (10 percent), down from a record 165.9 million last year as dry weather damaged crops. Argentina may plant the smaller crop after the government delayed plans to lift a ban on exports. Decreasing global corn yield makes U.S. export potential bullish. December futures for corn delivery advanced $0.0475 (1.4 percent) to $3.3875 per bushel as of 11:15 on CBoT.

Cotton prices rose in New York after a report about slower Chinese production. Cotton production in China may fall to 7.02 million tons this year (9.9 percent down from last year). December futures for cotton delivery gained $0.0087 (1.4 percent) to $0.6281 per pound by 12:28 on ICE Futures U.S. in New York.

Sugar dropped as India, the largest consumer in the world, lowered imports and the dollar rebounds, decreasing the attractiveness of the commodity as an alternative investment. The dollar rose 0.7 percent against a basket of six major currencies. Increasing rainfall has positive influence on sugar yield in India, curbing a rise in imports. March futures for raw-sugar delivery dropped $0.0029 (1.2 percent) to $0.2364 per pound by 10:24 on ICE Futures U.S. in New York.

Crude oil slid because the dollar rebounded against the euro, reducing appeal of dollar-priced assets as inflation hedge. As more investment banks became involved in oil-trading in recent years, oil price became more influenced by equities and the dollar. October delivery for crude oil slid $0.35 (0.5 percent) to $72.12 per barrel as of 10:43 on NYMEX.

Cotton fell, halting the longest rally in 36 years, as the dollar strengthen, eroding the attractiveness of fiber exports from the U.S., the biggest shipper in the world. Both decline of crude oil and rebound in dollar have negative impact on cotton prices. December futures for cotton delivery fell $0.0014 (0.2 percent) to $0.6404 per pound at 11:02 on ICE Futures U.S. in New York.

Pig farmers and other private investors in China, the largest metals user in the world, have amassed more than 50,000 metric tons of copper as the government ramps up stimulus spending to spur the economy. Reason for the increase in demand may be pessimistic outlook for the economy making people to invest in copper as a store of value, not unlike they would with gold. The metal traded today at $6,470 per ton on the London Metal Exchange. Thus a holding of 50,000 tons worth $324 million.

Corn and soybeans fell as weather forecast indicated that temperatures will stay above freezing next week in the Midwest, lowering the threat of crop damage. Corn yield will reach 12.954 billion bushels, soybean output will climb to 3.245 billion bushels. December futures for corn delivery dropped $0.0775 (2.3 percent) to $3.285 per bushel as of 9:57 a.m. on CBoT. November futures for soybean delivery went down $0.0425 (0.4 percent) to $9.4625 per bushel in Chicago.

Cotton advanced, heading for the longest rally in 36 years, on concern that weather in India, the second-biggest producer in the world, may reduce crops and on signs of possible increase in demand in the U.S. because of a rebounding economy. Rainfalls in India were 21 percent below normal. U.S. housing and unemployment data signals that the recession may be over. December futures for cotton delivery gained $0.0037 (0.6 percent) to $0.6389 per pound by 11:33 on ICE Futures U.S. in New York.

Cotton prices rose, heading to the longest rally since 1976, on speculation that rain in the U.S. South may delay harvest. 2-inch rains is helping West Texas, where the crop runs about three or four weeks behind in maturity, but delays harvesting in the rest of the Cotton Belt. December futures for cotton wet up $0.0108 (1.7 percent) $0.6329 per pound as of 11:50 on ICE Futures U.S. in New York.

Crude oil advanced more than $2 a barrel in New York as sales at U.S. retailers jumped in August. The dollar declined, increasing the appeal of commodities as a hedge against inflation. Manufacturers may help the U.S. economy as they increase production after a record inventory drawdown in the first half of 2009. October delivery for crude oil gained $2.07 (3 percent) to $70.93 per barrel by 14:46 on the New York Mercantile Exchange.

Copper gained after growth in the U.S. retail sales signaled about a rebound in economy. Retail sales increased 2.7 percent last month from July. Copper prices have doubled this year on speculation about slower global recession. December delivery for copper rose $0.0405 (1.4 percent) to $2.845 per pound on NYMEX.

Black-pepper prices may jump as the global economic recovery boosts demand for commodities. Floods in pepper-growing areas in Brazil, the third-largest producer in the world, may have negative impact on the harvest, and the yield in Vietnam, the biggest supplier, may not be enough to meet rising demand. Wholesale prices at the Port of New York climbed to $1.52 per pound last week, up 32 percent from $1.15 on April 9th; by January 1st pepper may reach $1.70 per pound.

Lack of investments into the sugar industry in the Brazil, the world’s biggest producer and exporter, prevents sugar producers to increase capacity and benefit from the high prices. Considering sluggish production in Brazil, as well as a shortage in markets from India to Egypt, a global supply deficit may be expected. October delivery for raw-sugar climbed 1.9 percent to $0.2485 per pound on ICE Futures U.S. yesterday.

Cotton prices rise on speculation that demand from textile mills will be spurred by yesterday’s slide. “The textile mills kind of wait for it to dip, buy into the declines when they stabilize,” said Andy Ryan, a risk-management consultant in Nashville, Tennessee, for broker FCStone Group Inc. December futures for cotton delivery gained $0.004 (0.7 percent) to $0.5875 per pound by 11:55 on ICE Futures U.S. in New York.

Sugar production in India may rise because rains improve cane crops. In the year ending September India may produce about 18 million metric tons, compared to previous forecast of 15 million tons. Raw sugar delivery for October dropped 2.5 percent to $0.2165 per pound in New York, prices fell 3.3 percent yesterday.

Prices for cotton dropped as U.S consumer confidence fell and concerns for economic recovery renewed. Global cotton consumption dropped 10 percent in the year ended July 31. Cotton acreage planted by U.S. farmers decreased from 9.47 million last year to 9.05 million this year as farmers plan to grow more grains and oilseeds. December futures for cotton delivery dropped $0.0282 (4.4 percent) to $0.6127 per pound as of 11:51 on ICE in New York.

Crude oil and gasoline slid after a report that confidence among U.S. consumers fell in August. The report caused worries about U.S. economy and concerns about demand for the fuel. Oil prices also tumbled after dollar rebound against euro causing commodities to become less attractive as an alternative investment. September delivery for crude oil dropped $2.57 (3.6 percent) to $67.95 per barrel by 12:53 on the New York Mercantile Exchange.

U.S. cotton production may exceed the government’s forecast. Forecast in August predicts that farmers will harvest 13.5 million bales, compared to a July forecast of 13.25 million. July provided above-normal temperature and moisture enough to make favorable conditions for crop in Texas and southeastern states. December futures for cotton delivery gained $0.0157 (2.6 percent) to $0.6243 per pound on ICE Futures U.S. in New York on August 7th.

Gold falls as dollar increases and equities decrease today. Some weakness in the stock markets and dollar rebound causes demand for gold as alternative investment to decrease making some investors to sell gold. But there is speculation that some investors may buy gold after prices would fall as hedge against future dollar slide. December futures for gold fell $12.60 (1.3 percent) to $946.90 per ounce by 12:41 on the New York Mercantile Exchange’s Comex division.

Copper decline erased previous gains because of concerns that metal’s rally was exaggerated. Worldwide decline in demand for the metal threatens rally. As Goldman Sachs JBWere said, base-metals prices have run faster than justifiable. China is exception as its economic growth almost doubled copper prices. September futures for copper delivery slid $0.015 (0.6 percent) to $2.7705 per pound on NYMEX.