Cotton futures rose in value Tuesday, emerging from their lowest value in 10 months as a result of speculation that dry weather might harm production in the globe's top producer of the soft fiber, Bloomberg reports.
Less than 30 percent of the cotton crop in the U.S. is considered to be in condition good or excellent, the Agriculture Department announced on Monday. That figure is well less than the 68 percent registered at the same time last year.
"The crop condition in the U.S. is worrying, and the current slump should be attracting some buyers," Keith Brown, president of Georgia-based Keith Brown & Co brokerage, told the news service. "The market looks oversold at current levels."
At 2:54 p.m. on Tuesday, cotton futures climbed 4.13 percent, a .04 cent gain to $1.0076 per pound.
The International Business Times reports the ongoing debt ceiling political dispute is beginning to negatively impact cotton futures. Selling was heavy but has dropped off while prices for the soft commodity in India are lower than those in the U.S. Major growing areas of the U.S. do not have much rain forecast.
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