NEW YORK (Dow Jones)--Cotton prices jumped Thursday in sympathy with rallying
Chicago Board of Trade grains as a Russian export ban riled row crops markets.
Nearby cotton for October delivery settled 0.20 cent at 84.20 cents a pound
on ICE Futures U.S.
Russian Prime Minister Vladimir Putin banned grain exports for the rest of
the year amid severe heat and drought that has kindled fires throughout the
country, sending U.S. wheat futures toward their highest open in nearly two
years. Cotton competes with grains for acreage and farmers use relative prices
of crops to determine which they will plant.
"Cotton is definitely running in sympathy [with rallying grains]," said Luis
Rangel, vice president for commodities derivatives at ICAP Futures in Jersey
City, N.J.
Spillover speculative buying pushed cotton past technical resistance at 80
cents.
However, the key to market direction is at what level commercial traders are
willing to buy, Rangel said.
Volume was estimated 27,824 lots. In options, approximately 921 calls and
1,494 puts traded, according to exchange data.
Close Change Range
Oct 84.20 +0.20 83.94-86.00
Dec 80.06 +0.59 79.01-81.78
Mar 78.00 +0.57 77.00-79.38