Investing.com – Cotton futures were down for a third day on Tuesday, slumping to a one-week low after government data showed that U.S. crop conditions improved last week, easing concerns over tightening supplies.
On the ICE Futures U.S. Exchange, cotton futures for July delivery traded at USD1.5419 a pound during European morning trade, dropping 0.9%.
It earlier fell to USD1.5347 a pound, the lowest price since May 31.
The U.S. Department of Agriculture said in its weekly crop-progress report on Monday that approximately 87% of U.S. cotton crops were planted as of June 5, up from 73% a week earlier and in line with the five-year average for this time of year.
In Texas, the largest cotton-growing state in the U.S., nearly 83% of cotton crops were planted as of last week, compared to 65% a week earlier, while crops in Alabama, the third-largest grower were 84% planted, up from 77% a week earlier.
The U.S. is the world’s second largest cotton producer and the biggest exporter of the fiber.
Meanwhile, U.K.-based industry research group Cotlook said in a report on Monday that the cotton shortage in the 2011-12 marketing season was now expected to 24% smaller than last month’s forecast, due to slowing demand in China, the world’s largest cotton consumer.
Global cotton production will lag behind demand by 414,000 metric tons in the season that ends July 31, down from last month’s estimate of 548,000 tons. China’s demand forecast was lowered by 188,000 tons to 9.8 million tons, the company said.
Elsewhere, wheat for July delivery eased up 0.12% to trade at USD7.4275 a bushel, corn for July delivery edged 0.14% higher to trade at USD7.3262 a bushel, while soybeans for July delivery added 0.17% to trade at USD13.8688 a bushel during European morning trade.
On the ICE Futures U.S. Exchange, cotton futures for July delivery traded at USD1.5419 a pound during European morning trade, dropping 0.9%.
It earlier fell to USD1.5347 a pound, the lowest price since May 31.
The U.S. Department of Agriculture said in its weekly crop-progress report on Monday that approximately 87% of U.S. cotton crops were planted as of June 5, up from 73% a week earlier and in line with the five-year average for this time of year.
In Texas, the largest cotton-growing state in the U.S., nearly 83% of cotton crops were planted as of last week, compared to 65% a week earlier, while crops in Alabama, the third-largest grower were 84% planted, up from 77% a week earlier.
The U.S. is the world’s second largest cotton producer and the biggest exporter of the fiber.
Meanwhile, U.K.-based industry research group Cotlook said in a report on Monday that the cotton shortage in the 2011-12 marketing season was now expected to 24% smaller than last month’s forecast, due to slowing demand in China, the world’s largest cotton consumer.
Global cotton production will lag behind demand by 414,000 metric tons in the season that ends July 31, down from last month’s estimate of 548,000 tons. China’s demand forecast was lowered by 188,000 tons to 9.8 million tons, the company said.
Elsewhere, wheat for July delivery eased up 0.12% to trade at USD7.4275 a bushel, corn for July delivery edged 0.14% higher to trade at USD7.3262 a bushel, while soybeans for July delivery added 0.17% to trade at USD13.8688 a bushel during European morning trade.