Cotton Futures Advance As Demand For U.S. Supplies Picks Up.

Cotton futures were up on Tuesday, climbing to a daily high amid indications of increased demand for U.S. cotton, after U.S. exports of the fiber surged in the preceding week.

On the ICE Futures U.S. Exchange, cotton futures for May delivery traded at USD1.9807 a pound during European afternoon trade, climbing 0.4%.

It earlier rose to a daily high of USD2.009 a pound.

The U.S. Department of Agriculture said in its weekly report on Monday that cotton for export inspected at U.S. ports in the week ended March 17 jumped by 85% to 334,000 bales, compared to net cancellations of 50,100 bales a week earlier.

According to the report, Vietnam purchased 150,200 bales of U.S. cotton, while China, the world’s largest consumer of the fiber imported 116,700 bales.

Separately, a report from the U.S. Commerce Department showed that domestic mills consumed cotton at an annualized rate of 3.855 million bales in February, up 11.9% from 3.445 million consumed a year earlier.

The U.S. is the world’s third largest cotton producer and the world’s largest exporter of the fiber.

Meanwhile, industry group Olam International said that the demand outlook for cotton was “very optimistic” as economic growth in China and India was likely to boost global consumption of the fiber.

Elsewhere, wheat for May delivery added 0.59% to trade at USD7.2988 a bushel, corn for May delivery rose 0.62% to trade at USD6.7450 a bushel, while soybeans for May delivery climbed 0.36% to trade at USD13.5438 a bushel during European afternoon trade.

Source : futurespros.com