Cotton Rises to 11-Month High on Bets China Will Boost Imports
This article by Marvin G. Perez for Bloomberg may be of interest to subscribers. Here is a section
In the week ended March 7, U.S. exports of upland cotton rose 25 percent from a week earlier with demand increasing in Turkey, Indonesia and China, the USDA said yesterday. “Anticipation of, and then confirmation of, continued strong interest in U.S. cotton” boosted prices, Johnson said. The U.S. is the top exporter. A bale weighs 480 pounds, or 218 kilograms. U.S. planting of the fiber may slump 27 percent this year as farmers shift to more-profitable crops, the National Cotton Council said last month.
Eoin Treacy's view Cotton broke successfully above the psychological 80¢ level in January, consolidated above the 200-day MA until late February and reasserted the medium-term uptrend earlier this month. While prices are somewhat overbought in the short-term, following an impressive rally, a sustained move below 85.5¢ would be required to question potential for additional upside.Back to top