Investing.com - Cotton futures rose sharply on Thursday, jumping to a six-day high after the U.S. Department of Agriculture lowered its forecast for the U.S. cotton harvest and after data showed Chinese cotton imports surged last month.
On the ICE Futures U.S. Exchange, cotton futures for December delivery traded at USD0.9954 a pound during European afternoon trade, rallying 2.43%.
It earlier fell by as much as 2.7% to trade at USD1.000 a pound, the highest price since November 2.
In its monthly World Agricultural Supply and Demand Estimates report published Wednesday, the USDA lowered its estimate for this year’s U.S. cotton crop to 16.3 billion bales, down 2% from last month’s forecast and 10% below year-ago levels.
The USDA’s outlook for cotton exports was lowered to 12 million bales, compared to 13 million estimated in October, citing reduced U.S. supplies and weaker foreign demand.
The U.S. is the world's third largest cotton producer and the biggest exporter of the fiber.
Despite the decline in U.S. supplies, global production is estimated at a record 123.4 million bales, as higher output in China, India and Pakistan boosts global reserves.
Meanwhile, official trade data released earlier showed that China’s cotton imports surged by 28.7% in October from September. China is the world’s largest cotton consumer.
Commodity traders continued to eye developments out of the euro zone surrounding the region’s debt crisis.
Italy’s Treasury auctioned EUR5 billion of one-year government bonds at an average yield of 6.08% earlier in the day, the highest since September 1997. Following the auction, the yield on 10-year Italian bonds fell back below the 7% mark, a level widely considered unsustainable for continued borrowing.
Meanwhile, Italian lawmakers prepared a package of deficit reduction and economic stimulus measures demanded by the European Union, ahead of a vote this weekend.
In Greece, former European Central Bank vice-president Lucas Papademos was named as Greece’s new interim prime minister, following days of talks amid a scramble to avert an imminent Greek default.
Elsewhere, on the ICE Futures Exchange, coffee futures for December delivery dipped 0.25% to trade at USD 2.2963 a pound, while sugar futures for March delivery jumped 1.4% to trade at USD0.2568 a pound.
On the ICE Futures U.S. Exchange, cotton futures for December delivery traded at USD0.9954 a pound during European afternoon trade, rallying 2.43%.
It earlier fell by as much as 2.7% to trade at USD1.000 a pound, the highest price since November 2.
In its monthly World Agricultural Supply and Demand Estimates report published Wednesday, the USDA lowered its estimate for this year’s U.S. cotton crop to 16.3 billion bales, down 2% from last month’s forecast and 10% below year-ago levels.
The USDA’s outlook for cotton exports was lowered to 12 million bales, compared to 13 million estimated in October, citing reduced U.S. supplies and weaker foreign demand.
The U.S. is the world's third largest cotton producer and the biggest exporter of the fiber.
Despite the decline in U.S. supplies, global production is estimated at a record 123.4 million bales, as higher output in China, India and Pakistan boosts global reserves.
Meanwhile, official trade data released earlier showed that China’s cotton imports surged by 28.7% in October from September. China is the world’s largest cotton consumer.
Commodity traders continued to eye developments out of the euro zone surrounding the region’s debt crisis.
Italy’s Treasury auctioned EUR5 billion of one-year government bonds at an average yield of 6.08% earlier in the day, the highest since September 1997. Following the auction, the yield on 10-year Italian bonds fell back below the 7% mark, a level widely considered unsustainable for continued borrowing.
Meanwhile, Italian lawmakers prepared a package of deficit reduction and economic stimulus measures demanded by the European Union, ahead of a vote this weekend.
In Greece, former European Central Bank vice-president Lucas Papademos was named as Greece’s new interim prime minister, following days of talks amid a scramble to avert an imminent Greek default.
Elsewhere, on the ICE Futures Exchange, coffee futures for December delivery dipped 0.25% to trade at USD 2.2963 a pound, while sugar futures for March delivery jumped 1.4% to trade at USD0.2568 a pound.