Cotton rose for the second time in three days on signs of
increased overseas demand for fiber from the U.S., the world’s
biggest exporter. Orange-juice futures declined.
Cotton shipments will total 14.3
million bales in the marketing year beginning Aug. 1, up from 13.5
million forecast last month, and a 17 percent jump from the current
year, the U.S. Department of Agriculture said in a report. Unsold
supplies on July 31, 2011, were estimated at 3.5 million bales, up
700,000 bales from the month-ago projection, while the crop estimate
was raised 9.6 percent to 18.3 million bales.
“Despite the jump in U.S. yields,
ending stocks are only up 700,000 bales,” said a managing director
at Logic Advisors, a commodities advisory group in Sonoma,
California. “Supplies are going to remain tight.”
Cotton for December delivery rose 1 cent, or 1.4 percent, to
74.99 cents a pound on ICE Futures U.S. in New York. The most-active
contract fell 0.7 percent last week, paring this year’s gain to 23
percent.
Global consumption will total 119.7 million bales, up from 119.5
million forecast last month, and outpacing worldwide production of
116 million bales, the USDA said in today’s report. The world
stocks-to-use ratio is the smallest since 1995, the department said.
A bale weighs 480 pounds, or 218 kilograms.
In another ICE market, orange-juice futures for September
delivery fell 0.05 cent to $1.3755, dropping for a fourth straight
day. The commodity has surged 54 percent in the last year on
forecasts for a smaller Florida crop. The U.S. is the second-biggest
producer behind Brazil.
