Investing.com – Cotton futures were sharply higher on Wednesday, after government data showed that U.S. crop conditions deteriorated last week, while fears over a disruption to supplies in Pakistan added to concerns over tightening global supplies.
On the ICE Futures U.S. Exchange, cotton futures for October delivery traded at USD1.0752 a pound during European morning trade, surging 2.01%.
It earlier rose as much as 2.15% to trade at USD1.0767 a pound, the highest price since August 22.
The U.S. Department of Agriculture said in its weekly crop-progress report on Monday that approximately 41% of U.S. cotton crops were rated in ‘poor’ to ‘very poor’ condition as of August 21, compared to 40% a week earlier and up significantly from 11% in the same week a year earlier.
U.S. crops rated ‘good’ to ‘excellent’ were unchanged at 31% last week.
In Texas, the largest cotton-growing state in the U.S., nearly 61% of cotton crops were rated ‘poor’ to ‘very poor’, while only 13% were ‘good’ to ‘excellent’ condition.
The U.S. is the world’s third largest cotton producer and the biggest exporter of the fiber.
In Pakistan, the world’s fourth largest grower, the Pakistan Cotton Ginners Association said heavy rainfall in the Sindh and Punjab regions, key cotton-growing areas, may have damaged as much as 1.5 million bales of cotton.
Pakistan’s cotton harvest in the 2010-11 marketing season totaled 8.8 million bales, down 8.3% from the previous marketing season, as the nation’s worst flood on record reduced output.
Elsewhere, on the Chicago Mercantile Exchange, wheat for September delivery shed 0.56% to trade at USD7.5388 a bushel, corn for September delivery dipped 0.27% to trade at USD7.2863 a bushel, while soybeans for September delivery edged 0.29% lower to trade at USD13.8688 a bushel.
On the ICE Futures U.S. Exchange, cotton futures for October delivery traded at USD1.0752 a pound during European morning trade, surging 2.01%.
It earlier rose as much as 2.15% to trade at USD1.0767 a pound, the highest price since August 22.
The U.S. Department of Agriculture said in its weekly crop-progress report on Monday that approximately 41% of U.S. cotton crops were rated in ‘poor’ to ‘very poor’ condition as of August 21, compared to 40% a week earlier and up significantly from 11% in the same week a year earlier.
U.S. crops rated ‘good’ to ‘excellent’ were unchanged at 31% last week.
In Texas, the largest cotton-growing state in the U.S., nearly 61% of cotton crops were rated ‘poor’ to ‘very poor’, while only 13% were ‘good’ to ‘excellent’ condition.
The U.S. is the world’s third largest cotton producer and the biggest exporter of the fiber.
In Pakistan, the world’s fourth largest grower, the Pakistan Cotton Ginners Association said heavy rainfall in the Sindh and Punjab regions, key cotton-growing areas, may have damaged as much as 1.5 million bales of cotton.
Pakistan’s cotton harvest in the 2010-11 marketing season totaled 8.8 million bales, down 8.3% from the previous marketing season, as the nation’s worst flood on record reduced output.
Elsewhere, on the Chicago Mercantile Exchange, wheat for September delivery shed 0.56% to trade at USD7.5388 a bushel, corn for September delivery dipped 0.27% to trade at USD7.2863 a bushel, while soybeans for September delivery edged 0.29% lower to trade at USD13.8688 a bushel.