Futures Market News
Textile firm leader predicts cotton futures will surge
Mar 29, 2012 12:22 PM
Cotton futures are forecast to spike upward in value later this year as the globe's top consumer is projected to import more of the soft commodity, the president of a textile firm told Bloomberg.
Less than 13 months after cotton notched an all-time high price, president Zhang Hongxia with Weiqiao in Hong Kong said China this season will import 18.5 million bales. That would mark the largest import in six years and an increase of 54 percent more than last year.
"Things are looking to pick up in the industry at the beginning of this year, as far as we can see we are running at full capacity in the first two months and our end-product cotton yarn inventory has been reduced by 12 percent during the period," Zhang said. "Cotton demand is set to rise this year and the price gap between foreign and local cotton will narrow steadily."
At 12:22 p.m. on Thursday, cotton futures fell 0.8 percent, a 0.75 cent slip to 93.28 cents per pound.
The record price for cotton futures is $2.197 per pound as established on March 7 of last year.
Reuters reports a survey indicated cotton plantings in the U.S. decreased 13 percent as compared to last year's figures.
Don’t Miss Our News Updates!
Share dt News:
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Wealth Empowerment Guide
Learn how to trade commodity futures and options using funds from an IRA or 401(k)!
Is your IRA parked in some mutual fund, going nowhere? Why not take control? Trade futures direct with a broker, trade online, and even invest in a managed account with a Commodity Trading Advisor. We are here to help!
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.
