Cotton Falls on Concerns About Larger Crop Next Year
March 27 2017 - 3:35PM
Dow Jones News
By Carolyn Cui
Cotton edged down Monday, as the market's recent robust
performance prompted worries that more acreage will be devoted to
cotton plantation next year.
Cotton futures for May delivery fell 0.7% to settle at 76.94
cents a pound on the ICE Futures U.S. exchange.
Some speculators who had flocked into the cotton market early
this year were seen to be exiting ahead of the release of USDA's
prospective planting report. The report, which is scheduled to be
out on March 31, is expected to show an increase of cotton acreage
for the next crop year.
On average, traders and analysts expect the government to revise
up the planting projection to 11.9 million acres from its initial
projection of 11.5 million.
On Monday, concerns over a larger crop next year sapped
enthusiasm for strong overseas demand for U.S.-grown fiber. As of
March 16, total export sales already reached 7.5 million bales,
running 76% ahead of the same period last year, according to the
USDA.
So far this year, futures have been rising on robust demand for
U.S. cotton, fueled by a 45% decline in Brazilian exports this year
after strong sales a year earlier, as well as fears of a trade war
that have resulted in aggressive buying from major cotton importers
in Asia.
In other markets, raw sugar for May fell 0.1% to settle at 17.70
cents a pound, while cocoa for May was up 0.9% to end at $2,150 a
ton. Arabica coffee for May delivery added 1.2% to close at $1.3920
a pound, and frozen concentrated orange-juice futures for May fell
3% to settle at $1.75 a pound.
Write to Carolyn Cui at carolyn.cui@wsj.com
(END) Dow Jones Newswires
March 27, 2017 15:20 ET (19:20 GMT)
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