Futures Market News
Increasing dollar dissuades cotton traders
Jul 11, 2011 05:40 PM
Cotton futures drove down in value Monday as the dollar's sharply increasing value deterred exports of the soft fiber and other commodities, Bloomberg reports.
When held up against six rival monetary units, the U.S. dollar drove to its top price in six weeks. Cotton futures sank to their lowest value in about nine months. The soft fiber's record price is $2.197 per pound, which was notched on March 7. The fiber decreased in value about 50 percent, which analysts correlated with waning demand from China, renowned as the world's top buyer of the commodity.
"Managed-money and commodity bulls are licking their wounds and reevaluating their positions," Chris Kramedjian, risk-management consultant of FCStone Fibers & Textiles in Tennessee, told Bloomberg.
Cotton futures ended the Monday session having lost 4.39 percent of their value, a 0.05 cent slip to $1.0888 per pound.
China is inclined to once again raise interest rates, Agrimoney.com reports, on account of poorer-than-anticipated data following efforts to rein in inflation. China is working on cooling off its red-hot economy, considered the globe's most rapidly developing.
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