Farm Progress

Analysts have rated cotton as emerging among the best-supported crops, in pricing terms, from a slew of key US data, with Rabobank saying the fiber may witness "another bullish scenario".

May 13, 2011

1 Min Read

From Agrimoney:

Analysts have rated cotton as emerging among the best-supported crops, in pricing terms, from a slew of key US data, with Rabobank saying the fibre may witness "another bullish scenario".

The US Department of Agriculture, in its first estimates for 2011-12 crops released on Wednesday, pegged world output at 124.7m bales, a rise of 8.8%, enough to return the market to a production surplus and ease a squeeze on supplies which drove prices to record highs.

The data, reflecting a forecast of a record harvest in India, the second-ranked producer, fuelled a modest sell-off in New York futures which continued in the current session when New York's July contract fell 2.1% to 147.22 cents a pound, well below the record 227 cents a pound for a spot contract reached in February.

The new crop December lot shed 2.2% to 122.50 cents a pound.

For more, see: Cotton may be set for 'another bullish scenario'

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