- Price surged 57% since plunging to a decade low in April
- Rally in soybeans, corn erodes 2021 cotton acreage outlook
Cotton futures climbed on signs of firm demand for supplies from the U.S., the world’s top exporter. Most soft commodities advanced as a weaker dollar boosted the appeal of assets priced in the greenback.
The U.S Department of Agriculture cut its forecast for the domestic crop several times after adverse weather, including drought and hurricanes, eroded supply prospects. Futures have jumped 57% from the lowest in a decade on April 1. A surge in soybean and corn prices signals cotton acreage may ebb next year, Peter Egli, a Chicago-based director for Plexus Cotton Ltd., said in a report.
Cotton for March delivery rose 1.3% to 75.79 cents a pound at 12:34 p.m. on ICE Futures U.S. in New York. Last week, the price reached 77.41 cents, the highest for a most-active contract since April 2019.
Brazil, the second-largest exporter, faces a smaller harvest and higher domestic demand, while Pakistan, a major importer, is boosting purchases after a drop in production.
Raw sugar, arabica coffee and cocoa climbed in New York.
Πηγή: Bloomberg