Investing.com - Cotton futures moved higher on Thursday, trading close to the previous session’s two-week high amid indications fiber demand from top consumer China will remain strong in the near-term.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD0.9233 a pound during European afternoon trade, jumping 1.56%.
It earlier rose by as much as 1.85% to trade at a daily high of USD0.9277 a pound. Prices climbed to USD0.9365 a pound on Wednesday, the highest since November 21.
Industry group Cotton Council International said that it expected China to import more cotton from the U.S. in the 2011-12 marketing season, driven by “booming domestic consumption.”
Karin Malmstrom, director of the CCI’s branch in China, said that, “We are seeing a growing middle-class in China that is willing to pay more for cotton.”
She added that, “With the recent large purchase, the import market share for U.S. cotton is expected to further expand.”
China purchased nearly 996,100 bales of U.S. cotton last week, the largest weekly purchase since October 2003.
Cotton traders have been focusing on prospects for increased Chinese demand in recent weeks after the country started a cotton stockpile in early September to protect domestic farmers' interests.
According to government data released on November 15, China imported 252,300 tonnes of cotton in October, a 163% jump from the same period last year, as lower prices boosted purchases.
Meanwhile, commodity traders continued to eye developments surrounding the euro zone’s ongoing debt crisis.
Spain’s Treasury auctioned the full targeted amount of EUR3.75 billion of government bonds earlier in the day, while France auctioned as much as EUR4.5 billion of debt, but both countries saw borrowing costs increase.
The news saw the euro climb higher against the U.S. dollar, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% to trade at 78.31.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, on the ICE Futures Exchange, coffee futures for March delivery rose 0.25% to trade at USD 2.3707 a pound, while sugar futures for March delivery climbed 0.48% to trade at USD0.2383 a pound.
Later in the day, the U.S. Department of Agriculture was to publish its weekly report on U.S. cotton export sales.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD0.9233 a pound during European afternoon trade, jumping 1.56%.
It earlier rose by as much as 1.85% to trade at a daily high of USD0.9277 a pound. Prices climbed to USD0.9365 a pound on Wednesday, the highest since November 21.
Industry group Cotton Council International said that it expected China to import more cotton from the U.S. in the 2011-12 marketing season, driven by “booming domestic consumption.”
Karin Malmstrom, director of the CCI’s branch in China, said that, “We are seeing a growing middle-class in China that is willing to pay more for cotton.”
She added that, “With the recent large purchase, the import market share for U.S. cotton is expected to further expand.”
China purchased nearly 996,100 bales of U.S. cotton last week, the largest weekly purchase since October 2003.
Cotton traders have been focusing on prospects for increased Chinese demand in recent weeks after the country started a cotton stockpile in early September to protect domestic farmers' interests.
According to government data released on November 15, China imported 252,300 tonnes of cotton in October, a 163% jump from the same period last year, as lower prices boosted purchases.
Meanwhile, commodity traders continued to eye developments surrounding the euro zone’s ongoing debt crisis.
Spain’s Treasury auctioned the full targeted amount of EUR3.75 billion of government bonds earlier in the day, while France auctioned as much as EUR4.5 billion of debt, but both countries saw borrowing costs increase.
The news saw the euro climb higher against the U.S. dollar, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% to trade at 78.31.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, on the ICE Futures Exchange, coffee futures for March delivery rose 0.25% to trade at USD 2.3707 a pound, while sugar futures for March delivery climbed 0.48% to trade at USD0.2383 a pound.
Later in the day, the U.S. Department of Agriculture was to publish its weekly report on U.S. cotton export sales.