Cotton Futures Slump on Improving U.S. Crop Conditions
November 30, 2011 Cotton futures declined on Tuesday, trading close to the previous week’s 14-month low as improving U.S. cotton crop conditions and concerns over a slowdown in demand continued to weigh on prices, according to a story posted on www.moneycontrol.com.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at 90.72 U.S. cents per pound during European afternoon trade, dropping 0.68%.
It earlier fell by as much as 0.8 percent to trade at a daily low of 90.6 cents per pound. Prices dropped to 89.4 cents per pound on November 22, the lowest level since September 2010.
The U.S. Department of Agriculture said in its weekly crop progress report, which was published after markets closed Monday, that nearly 92% of the U.S. cotton crop had been harvested by November 27, up from 84% the week before and above the five-year average of 82% for this time of year.
In Texas, the largest cotton-growing state in the U.S., approximately 93% of the cotton crop was harvested as of last week, compared to 82% a week earlier, while 86% of crops in Alabama, the third-largest grower, were harvested, up from 80% the week before.
Cotton futures have declined in six of the last eight trading sessions and have lost nearly 11% in November, as concerns over a slowdown in demand from top consumer China and increasing competition for U.S. export sales have been weighing heavily on prices in recent weeks.
Meanwhile, commodity traders continued to monitor developments out of the Eurozone surrounding the region’s debt crisis.
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