Cotton falls on concern demand may slow
Sunday, 7 February 2010
CHICAGO, Feb 6 (Bloomberg): Cotton futures dropped to the lowest prices since November as a rally in the dollar eroded the appeal of commodities and slumping equity markets revived concern that the economic recovery may stall, slowing demand for clothing.
The dollar jumped to the highest level against major currencies since July. The Standard & Poor's 500 Index fell, after a 3.1 per cent drop Thursday that was the biggest Decemberline since April, and the Reuters/Jefferies CRB Index of 19 raw materials slipped to the lowest level since October. Cotton prices have plunged 13 per cent from an 18-month high on January 4.
"People are scared from yesterday," said Mike Stevens, an independent analyst and trader in Mandeville, Louisiana. "I have low confidence on saying anything fundamental is going to affect this market right now. Cotton can't go anywhere by itself."
Cotton futures for March delivery fell 2.37 cents, or 3.4 per cent, to 66.62 cents a pound on ICE Futures US in New York, after touching 66.55 cents, the lowest price since November 6. Futures dropped 3.5 per cent for the week, the fifth straight Decemberline.
Prices jumped 54 per cent last year as adverse weather hampered harvests and damaged crop quality in the US, the world's biggest exporter of the fiber.
In another ICE market, orange-juice futures for March delivery fell 3.3 cents, or 2.4 per cent, to $1.3395 a pound, after touching $1.334, the lowest price since January 20. The contract slipped 1.6 per cent for the week, the second straight Decemberline.
The dollar jumped to the highest level against major currencies since July. The Standard & Poor's 500 Index fell, after a 3.1 per cent drop Thursday that was the biggest Decemberline since April, and the Reuters/Jefferies CRB Index of 19 raw materials slipped to the lowest level since October. Cotton prices have plunged 13 per cent from an 18-month high on January 4.
"People are scared from yesterday," said Mike Stevens, an independent analyst and trader in Mandeville, Louisiana. "I have low confidence on saying anything fundamental is going to affect this market right now. Cotton can't go anywhere by itself."
Cotton futures for March delivery fell 2.37 cents, or 3.4 per cent, to 66.62 cents a pound on ICE Futures US in New York, after touching 66.55 cents, the lowest price since November 6. Futures dropped 3.5 per cent for the week, the fifth straight Decemberline.
Prices jumped 54 per cent last year as adverse weather hampered harvests and damaged crop quality in the US, the world's biggest exporter of the fiber.
In another ICE market, orange-juice futures for March delivery fell 3.3 cents, or 2.4 per cent, to $1.3395 a pound, after touching $1.334, the lowest price since January 20. The contract slipped 1.6 per cent for the week, the second straight Decemberline.