 "Cotton records longest slump in six months")
Cotton futures fell, capping the longest slump in six months, on mounting speculation that global supplies will outpace demand. Sugar and cocoa slid, while coffee and orange juice gained.
Cotlook Ltd., a research company, boosted its forecast today for a global surplus in the 12 months starting August 1 by 51 per cent. US planting this year may total 11 million acres, 10 per cent more than a February 22 government forecast, Jordan Lea, the chairman of Eastern Trading Co, an exporter in Greenville, South Carolina, said last week.
US "acres will likely be above 10 million, possibly 10.5 million," John Flanagan, the president of Flanagan Trading in in Fuquay-Varina, North Carolina, said today in a report. "This could produce a crop of 14 million to 16 million bales and would be viewed as bearish by traders."
In the four months ending in February, cotton jumped 22 per cent, spurring US farmers to consider a shift back to fiber planting. The commodity touched a 31-month low in June, while corn and soybeans surged to records last year.
Global production will exceed demand by 1.725 million metric tons, up from 1.145 million forecast in February, Birkenhead, England-based Cotlook said. A bale weighs 480 pounds, or 218 kilograms.
Raw-sugar futures for May delivery fell 1.3 percent to 17.97 cents a pound in New York.
The price dropped for the third straight session, the longest slump in six weeks.
Cocoa futures for May delivery slid 1.3 per cent to $2,130 a tonne.
Arabica-coffee futures for May delivery climbed 0.2 percent to $1.356 a pound.
The commodity gained for the fourth straight session, the longest rally in four months.
Orange-juice futures for May delivery advanced 0.9 percent to $1.394 a pound.
Cotlook Ltd., a research company, boosted its forecast today for a global surplus in the 12 months starting August 1 by 51 per cent. US planting this year may total 11 million acres, 10 per cent more than a February 22 government forecast, Jordan Lea, the chairman of Eastern Trading Co, an exporter in Greenville, South Carolina, said last week.
US "acres will likely be above 10 million, possibly 10.5 million," John Flanagan, the president of Flanagan Trading in in Fuquay-Varina, North Carolina, said today in a report. "This could produce a crop of 14 million to 16 million bales and would be viewed as bearish by traders."
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Cotton for May delivery dropped 0.8 per cent to settle at 86.59 cents a pound at 2:30 p.m. on ICE Futures US in New York. The price fell for the fourth straight session, the longest slump since September 26.
In the four months ending in February, cotton jumped 22 per cent, spurring US farmers to consider a shift back to fiber planting. The commodity touched a 31-month low in June, while corn and soybeans surged to records last year.
Global production will exceed demand by 1.725 million metric tons, up from 1.145 million forecast in February, Birkenhead, England-based Cotlook said. A bale weighs 480 pounds, or 218 kilograms.
Raw-sugar futures for May delivery fell 1.3 percent to 17.97 cents a pound in New York.
The price dropped for the third straight session, the longest slump in six weeks.
Cocoa futures for May delivery slid 1.3 per cent to $2,130 a tonne.
Arabica-coffee futures for May delivery climbed 0.2 percent to $1.356 a pound.
The commodity gained for the fourth straight session, the longest rally in four months.
Orange-juice futures for May delivery advanced 0.9 percent to $1.394 a pound.