SINGAPORE, Sept 15 (Bloomberg): Cotton advanced for a fourth day, extending a rally to the highest price in more than 15 years as cold weather threatens the crop in China, the world's largest user, boosting import demand and tightening global supplies.
December-delivery cotton advanced as much as 0.6 per cent to 95.08 cents a pound on ICE Futures US in New York, the highest price since June 1995. The contract traded at 95.06 cents a pound at 9:25 am Singapore time.
Cotton-growing regions in central China "could turn wetter and cooler again early next week," Telvent DTN Inc. said in a forecast Tuesday. The condition of the country's crop has deteriorated, compared with a year earlier, after low temperatures and prolonged rains delayed planting and crop development, the official Xinhua News Agency said on Sept 11.
"There's a concern that global supplies will tighten," said Chung Yang Ker, an analyst at Phillip Futures Pte in Singapore. He forecast the price may rise to $1, without citing a timeframe.
Global inventories will fall to 45.4 million bales in the 12 months ending July 31, the lowest level in 14 years, US Department of Agriculture data showed on Sept 10. A bale weighs 480 pounds (218 kilos).
Cotton may rise to $1.25 a pound by January as supplies dwindle, OA Cleveland, a professor emeritus in agricultural economics at Mississippi State University, said Tuesday.
World News / বিশ্ব সংবাদ
Cotton extends rally to 15-year high
September 17th, 2010487 views