Thursday, July 30, 2009

Cotton Climbs as U.S. Exports May Increase; Orange Juice Gains

From bloomberg.

The U.S., the biggest fiber exporter, may ship 10.5 million bales overseas next year with the global economy “in a recovery mode,” said Joe Nicosia, the chief executive officer of Cordova, Tennessee-based merchant Allenberg Cotton Co. Exports may reach 13 million bales “if demand takes off and we have a good recovery,” he said earlier this week.

Cotton futures for December delivery rose 0.99 cent, or 1.7 percent, to 60.11 cents a pound on ICE Futures U.S. in New York, the biggest gain for a most-active contract since July 10.

“We’re getting good inquiries from China, and we’re going to do business in China,” Jarral Neeper, the president of Bakersfield, California-based cotton cooperative Calcot Ltd., said on July 28. He estimates China will import 12 million bales in the new marketing year and U.S. exports may reach 11 million bales.

Price Prediction

Cotton prices may touch 72 cents in the next few months, mainly because of consumption gains in China, Neeper said. Calcot represents about 1,400 cotton growers in the western U.S., including California, Arizona and New Mexico.