Futures Market News
Texas drought benefits cotton futures
Jul 19, 2011 09:39 AM
The Lone Star State, top producer in the top-producing nation, is enduring what is believed to be the most severe drought in more than 100 years. Twenty-eight percent of cotton crops in the U.S. ranged from good to excellent this past Sunday as compared to 68 percent on the same date during the year prior.
"The weather fears are back," president Sid Love of Joe Kropf & Sid Love Consulting Services in Kansas told the news service. "Overall strength in the commodities market is also helping cotton."
At 10:10 a.m. on Tuesday, cotton futures gained 4.13 percent, a .04 cent rise to $1.0084 per pound.
The International Business Times reports sales cancellation pushed down prices for cotton futures last week while the U.S Agriculture Department has not indicated significant demand for export during the past month. Rather, cancelled sales indicate demand potential was overdone and India is selling cotton at prices lower than those of the U.S.
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