Cotton Price Forecasts Fall

Visit Save For Later

by Market Moves Staff

Posted

Cotton prices remained under pressure this week as the eurozone crisis deteriorated, with signs that Germany is the next country to join the drama after a bond auction yesterday failed to lure in buyers.

With global growth threatening to slow down and the world’s largest economy growing slower than expected in the third quarter, fears increase that demand for cotton will weaken – current global cotton inventories are in surplus by 9.8 million bales. Cotton for March delivery touched 89.33 cents a pound earlier this week, the lowest for a most-active contract since September 2010. The soft commodity has already dropped 59% from a record high of $2.197 on 7 March this year.

Experts at the Commission for Agricultural Costs and Pricing announced they expect the price to fall further as the debt crisis unfolds, while Deere, the world’s largest farm-equipment maker, cut its cotton forecast to 88 cents a pound from 90 cents a pound earlier this week. However, separate reports today from China, the world’s largest cotton producer and buyer, said the country may boost imports as the current price of cotton is substantially discounted to the domestic price. This could potentially decrease global cotton inventories, yet increase local inventories which are currently at an estimated 832,700 tons in November. This morning cotton prices were almost 1% higher at 90.71 cents a pound.

Like Like

Contribute to this Story:

All Commodities News

Recent Commodities News Articles

Copper prices increase after recent sell-off19 minutes ago
The price of copper is up 1% today, as traders buy back into the red metal after the recent sell-off seen in the last few trading sessions. Copper dropped to a one-week low yesterday as dealers anticipated weak global demand, while today investors who felt the sell-off was overdone bought back the ...
Copper rises as dealers buy stock29 Apr 2013
The price of copper is up 3% as dealers buy back into the red metal, feeling it has been oversold. Despite being up 3% on the day, copper is still down 10% since the beginning of March as traders are picking up the commodity for a relatively cheap price. Investors are concerned about global growth ...
Copper prices suffer in global slow down19 Apr 2013
The price of copper is down 0.9% as traders fear the global economy is slowing down, and that as a result there will be less demand for the red metal. The commodities market has generally had a bad run this week, but copper appeared to be the worst hit. At the start of the trading week, China revea...
Nymex Rises thanks to Weaker Dollar12 Apr 2013
The weaker dollar has helped to contribute to the probably short-lived bounce in oil prices, culminating in a 3% rise in the Nymex light crude contract since last Friday afternoon. The poor growth outlook for Europe’s economy, and the uncertainty that prevails following the Cypriot bailout, has spu...
Gold Prices down after sell-off by gold funds4 Apr 2013
Gold is down 0.75% at $1546 after US:GLD, the world’s largest gold fund, sold off a portion of its holding. In recent years gold funds have become a popular way for investors to gain exposure to the price of gold without owning the underlying metal. A gold fund uses investors’ cash to purchase the ...
Commodities update - 1st April 20132 Apr 2013
Gold is hovering near $1,600. Key uptrend support moves up toward $1,590 with next support on a breakdown near $1,560. RSI suggests upward mo stalling. Next resistance on a bounce remains near $1,620 then $1,635. Silver is breaking down today taking out $28.25 to signal the start of a new downleg ...
US Crude Prices up on day28 Mar 2013
US crude prices moved slightly upwards on a day when equity markets were enjoying yet another strong performance. Like most risk classes, oil waited to see what would happen when Cypriot banks reopened. As it turned out, nothing of note occurred, with no rush by Cypriots to take their money out. Th...
Gold price increases as traders take money out of equities21 Mar 2013
The price of the precious metal is up 0.5% as traders take their money out of the equity markets and go long on gold. The metal is now trading at $1614, up $8 on the day, as concerns about the situation in Cyprus have led traders to close out their stock portfolios and invest in gold. A numbe...
US Crude Oil Prices struggle to overcome $93.30 mark14 Mar 2013
US crude oil prices have made unsuccessful attempts to overcome the $93.30 mark no less than five times since falling below that level on 25 February. The Energy Information Administration (EIA) reported yesterday that the crude oil stockpile rose by 2.6 million barrels last week, keeping inventori...

Recent Articles

EUR/USD update (17th May 2013, 12:00)17 May 2013
The euro is trading lower versus the US dollar following reports the US will cut back on quantitative easing (QE). The euro is trading at $1.2875, down a touch on the day after John Williams of the Federal Reserve Bank of San Francisco stated that the Fed will reduce the size of its stimulus packag...
Market Comment 17th May 20131 minute ago
European equities are set to open flat to marginally lower as the bulls take a short breather. Despite the woeful data from Europe and the US yesterday, markets managed to muster enough momentum and twist logic enough to eek out another day of gains. Despite the stark evidence that all is not...
EUR/USD update (17th May 2013, 06:00)17 May 2013
It was a confusing night for the greenback, as US economic data disappointed and led to a USD sell-off. Unemployment claims, CPI, housing starts and the Philly Fed manufacturing index all came in worse than expected. However, this was short lived as another Fed member came out and suggested i...
Market Comment 16th May 201317 May 2013
European equities are set to open flat to marginally lower as the bulls take a short breather. Despite the woeful data from Europe and the US yesterday, markets managed to muster enough momentum and twist logic enough to eek out another day of gains. Despite the stark evidence that all is not...
Gold Price tumbles as Equity Markets rise17 May 2013
The price of gold has taken another tumble as equity markets steam ahead to new highs. Gold is trading at $1372, down 1.5% this morning, after US equities reached all-time highs last night. Historically, when traders have been worried about the global economy or the strength of the stock marke...
EUR/USD update (16th May 2013, 12:30)16 May 2013
After this morning’s EU consumer price index (CPI) figures, currency traders will be waiting to see how the US CPI figures come in. The EUR/USD currency cross looks set to retest the end of March lows of $1.2750, after a brief sojourn up to the $1.32 region. The overriding sentiment is that the US ...
EUR/USD update (16th May 2013, 06:00)16 May 2013
There were some mixed moves in the currency space overnight, but overall the US dollar managed to maintain its gains against the majors. It continued to edge higher, despite data suggesting the US economy isn’t quite where the Fed would want it to be before starting to taper off on asset purc...
EUR/USD update (15th May 2013, 12:30)15 May 2013
The euro is off against the US dollar after the eurozone economy is reported to have contracted for the sixth quarter in a row. The latest report from the eurozone shows us that the economy contracted by 0.2% for the first quarter of 2013 compared with 2012, making this the euro's sixth consecutive...
Market Comment 15th May 201315 May 2013
European equities look set to start on a positive footing as US markets take back the reins of sentiment. Despite weak economic data in Europe and the Feds Plosser calling for a tapering of bond purchases this summer, bullish momentum remained resilient and shrugged off any negative cues yest...