Futures Market News
Cotton futures drop amid forecast of stronger inventories
Mar 09, 2012 03:27 PM
Despite losses on Friday, the week was a productive one for the soft fiber. Its gains were roughly 0.64 percent, a little more than one year after establishing its record price of $2.197 per pound. One cotton analyst noted the Agriculture Department data was influential since it had an imbalance of creation and use.
"The USDA report can't get (any) more bearish. It's more production and less consumption. We've got an oversupply," independent cotton analyst Mike Stevens in Louisiana told Reuters.
At 2:39 p.m. on Friday, cotton futures lost 0.85 percent, a .76 cent slip to 88.8 cents per pound.
The Syracuse Journal-Democrat reports the soft commodity's performance was weak on Friday due to traders not being as aggressive in anticipation of the federal report.
India, the globe's second largest producer of cotton, affixed a ban on exports on Monday of last week, Reuters reports. The nation's farm minister challenged the ban but results of an Indian ministers' meeting on the issue were inconclusive.
Don’t Miss Our News Updates!
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: Futures Traders’ Guide to the WASDE
Improve Your Understanding of the Grain Markets!
With this guide, you will learn how to use these fundamental reports to forecast the price of Corn, Soybeans and Wheat. Now that the markets are open during the release of the WASDE, understanding how this very important USDA report can impact the markets is as critical as ever.
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.