Will Sugar Production in India Improve? Declining Prices for Cotton & Oil
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.
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