Cotton has longest slide in 16 months
Sunday, 31 January 2010
NEW YORK, Jan 30 (Bloomberg): Cotton prices fell, capping the longest slide in 16 months, on sales by speculators amid concern that US banks may reduce commodity trading.
President Barack Obama has called for limits on risk-taking by banks. The Reuters/Jefferies CRB Index of 19 raw materials headed for the biggest monthly slump since November 2008. The prospect of trading restrictions is paralyzing markets, said Ron Lawson, a managing director at Logic Advisors.
"It's very easy to see where the long speculators have been liquidating." he said from Sonoma, California.
Cotton futures for March delivery fell 0.11 cent, or 0.2 per cent, to 69.03 cents a pound on ICE Futures US in New York. The sixth straight decline was the longest slump since September 2008. This month, the price dropped 8.7 per cent, the most since February.
President Barack Obama has called for limits on risk-taking by banks. The Reuters/Jefferies CRB Index of 19 raw materials headed for the biggest monthly slump since November 2008. The prospect of trading restrictions is paralyzing markets, said Ron Lawson, a managing director at Logic Advisors.
"It's very easy to see where the long speculators have been liquidating." he said from Sonoma, California.
Cotton futures for March delivery fell 0.11 cent, or 0.2 per cent, to 69.03 cents a pound on ICE Futures US in New York. The sixth straight decline was the longest slump since September 2008. This month, the price dropped 8.7 per cent, the most since February.