Commodities

Cotton’s crash amid likely glut set to deepen

Bloomberg July 10 | Updated on July 10, 2019 Published on July 10, 2019

Cotton is in the grips of the bears, and fresh US supply forecasts coming this week will probably keep it there.

Prices tumbled to a three-year low on Tuesday amid the outlook for big supplies at a time when consumption growth is slowing and American exports are hurting.

Hedge funds are holding their biggest-ever bet that the declines will continue. Meanwhile, traders and analysts expect that the US Department of Agriculture will raise its outlook for domestic stockpiles, with the hoard forecast to reach a 12-year high.

Sentiment has only gotten more bearish in recent weeks amid improving American crop conditions and slow progress in trade negotiations between the U.S. and China, the worlds biggest consumer of the fibre.

Published on July 10, 2019
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