Cotton tumbles to 9-month low

Cotton , USA Oct 24, 2013 No Comments

CottonCotton prices fell to a nine-month low after data showed demand for the fiber has waned just as production is ramping up, as favorable weather conditions in key cotton-growing states in the U.S. was likely to boost the pace of the harvest. .

Cotton for delivery in December ended 1.8% lower at 79.21 cents a pound, the lowest settlement for the most actively traded contract since Jan. 18 on the ICE Futures U.S. exchange. Cotton prices are down 9.2% for the month.

The tepid demand for cotton comes as the U.S. harvest gets under way. While the crop is expected to be the smallest in four years, the influx of new cotton will add to already large global supplies.

The USDA forecasts world cotton supplies will outpace demand by 94.73 million bales in the current crop year, a 10% increase over the previous year’s surplus.

via No Soft Landing for Cotton – WSJ.com

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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