Futures Market News
Cotton harvest reduced by USDA due to U.S. drought
Sep 12, 2012 09:39 AM
This season's U.S. harvest of cotton will be more than 3 percent smaller than projections from August because of inclement weather, according to the U.S. Department of Agriculture.
Bloomberg reports the federal agency indicated the soft fiber will amount to 17.11 million bales as opposed to the 17.65 million bales that were projected last month. A poll administered to nine analysts by the news service indicated an average of 17.46 million bales while the immediate past crop amounted to 15.57 million bales of the soft commodity.
Reduced production of the soft commodity could be "due to lingering drought in the south-central U.S.," economist Gary Raines with FCStone Fibers and Textiles in Nashville, Tennessee, stated in an e-mail to the news service prior to the USDA's release of the figures.
At 9:34 a.m. on Wednesday, cotton futures fell 0.48 percent, a 0.0036 cent slip to 0.7457 cents per pound.
The Daily Times reports slow cotton trading was occurring in Pakistan on Wednesday, citing traders from the Karachi Cotton Association. The slow pace was attributed to purchasers of the soft fiber exercising caution regarding grade issues.
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