This morning cotton has made a new all time high on the trading session. Cotton futures(CT H1) is once again higher by 7.00 points to $204.45. The iPath Dow Jones-UBS Cotton Subindex Total Return ETN(NYSE: BAL) is trading higher $3.47 to $107.43 a share. BAL has increased higher by 200.00 percent since mid-July 2010.
arabianights
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Cotton Futures Soar to Record on `Worldwide Scramble' for Limited Supplies
By Chris Prentice and Jae Hur - Mar 4, 2011 3:50 PM GMT+0100
demand from textile mills will continue to outpace supplies.
Output in China, the world’s biggest consumer, fell 6.3 percent last year, the National Bureau of Statistics said this week. U.S. sales surged 56 percent to 403,341 bales in the week ended Feb. 24 from a week earlier, the U.S. Department of Agriculture said yesterday. Prices have more than doubled in the past year.
“It’s a worldwide scramble,” said John Flanagan, the president of Flanagan Trading Corp. in Fuquay-Varina, North Carolina. “The last holdouts realized there was no way out other than just buying, trying to find cotton to keep their mills running.”
Cotton for May delivery climbed by the exchange maximum of 7 cents, or 3.4 percent, to an all-time high of $2.127 a pound at 9:18 a.m. on ICE Futures U.S. in New York. The price headed for the sixth straight gain, the longest rally since Nov. 5.
“Export commitments out of the U.S. continue at record pace, and due to the razor-thin expected ending stocks, demand must be rationed as there is not enough cotton,” Rabobank International said in a report yesterday.
U.S. inventories monitored by ICE have tumbled 68 percent in the past 12 months.
“While the U.S. cotton planting season is still a month away, the current dry conditions in the South and strong La Nina suggest that soil moisture deficiencies could be an issue,” Rabobank said.
This week, futures are up 15 percent, the most since early December. A bale weighs 480 pounds, or 218 kilograms.
By Chris Prentice and Jae Hur - Mar 4, 2011 3:50 PM GMT+0100
demand from textile mills will continue to outpace supplies.
Output in China, the world’s biggest consumer, fell 6.3 percent last year, the National Bureau of Statistics said this week. U.S. sales surged 56 percent to 403,341 bales in the week ended Feb. 24 from a week earlier, the U.S. Department of Agriculture said yesterday. Prices have more than doubled in the past year.
“It’s a worldwide scramble,” said John Flanagan, the president of Flanagan Trading Corp. in Fuquay-Varina, North Carolina. “The last holdouts realized there was no way out other than just buying, trying to find cotton to keep their mills running.”
Cotton for May delivery climbed by the exchange maximum of 7 cents, or 3.4 percent, to an all-time high of $2.127 a pound at 9:18 a.m. on ICE Futures U.S. in New York. The price headed for the sixth straight gain, the longest rally since Nov. 5.
“Export commitments out of the U.S. continue at record pace, and due to the razor-thin expected ending stocks, demand must be rationed as there is not enough cotton,” Rabobank International said in a report yesterday.
U.S. inventories monitored by ICE have tumbled 68 percent in the past 12 months.
“While the U.S. cotton planting season is still a month away, the current dry conditions in the South and strong La Nina suggest that soil moisture deficiencies could be an issue,” Rabobank said.
This week, futures are up 15 percent, the most since early December. A bale weighs 480 pounds, or 218 kilograms.
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