Daniels Trading Senior Broker John Payne was quoted in The Wall Street Journal/WSJ.com article titled “Cotton Prices Fall on China Concerns.” The article reports on the prices of cotton falling due to China preparing to release cotton from its stockpile.
The reserve’s managers are buying cotton at a slower pace and getting pickier about what they do purchase, a sign that Beijing wants to pare down its stockpile, said John Payne, a senior broker and market strategist at Daniels Trading, a brokerage in Chicago.
“The thing about cotton is it’s really tied to that global growth story,” Mr. Payne said. And with growth slowing in China, that is “a recipe for this [cotton] contract to really sell off.”
Cotton futures ended Monday down 0.8%, at 75.95 cents a pound, on the benchmark ICE Futures U.S. exchange in New York. Prices are down 8.6% in the past two weeks.
Mr. Payne is predicting prices will fall below 70 cents a pound before the end of the year, and he is helping U.S. farmers lock in prices at current levels.
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