Investing.com - Cotton futures rose for the first time in three days on Wednesday, as concerns over cotton crops in Australia underpinned prices ahead of a closely-watched U.S. government report on U.S. and global supplies of the fiber.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD0.9525 a pound during European afternoon trade, gaining 0.71%.
It earlier rose by as much as 0.95% to trade at a session high USD0.9560 a pound. On Tuesday, prices fell to a two-day low of USD0.9435 a pound.
Cotton prices regained strength after agricultural meteorologists said that most parts of Eastern Australia were expected to receive another 25 to 50 millimeters of rain later this week.
The New South Wales government estimated on Monday that 570,000 hectares of land was flooded in north central and north western areas, with "widespread" inundation causing "extensive damage to agriculture industries.”
Australia’s Gwydir Valley-region, the country’s largest cotton growing area, suffered its worst floods in 35 years.
Industry group Cotton Australia said widespread rainfall and associated flooding in cotton growing areas of northern New South Wales and Queensland states might result in some damage to crops but the extent of this is "still too early to call"
Crop trader Olam International has warned that 10% of Australia's crop could be damaged by the floods.
Meanwhile, cotton traders were looking forward to Thursday's closely-watched U.S. Department of Agriculture's World Supply and Demand Report. The data could show a downward revision to U.S. cotton output in the current marketing year as well as possible adjustments to world consumption.
Cotton traders were also awaiting the release of key Chinese inflation figures on Thursday, which was likely to show further signs of cooling. Chinese consumer prices probably rose 4% in January, compared with a 4.1% gain in December.
Cotton traders have been focusing on prospects for increased Chinese demand in recent months after the country started a cotton stockpile in September to protect domestic farmers' interests.
China is both the world’s largest producer and consumer of the fiber.
Elsewhere, on the ICE Futures Exchange, coffee futures for March delivery added 0.4% to trade at USD 2.2060 a pound, while sugar futures for March delivery eased down 0.05% to trade at USD0.2450 a pound.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD0.9525 a pound during European afternoon trade, gaining 0.71%.
It earlier rose by as much as 0.95% to trade at a session high USD0.9560 a pound. On Tuesday, prices fell to a two-day low of USD0.9435 a pound.
Cotton prices regained strength after agricultural meteorologists said that most parts of Eastern Australia were expected to receive another 25 to 50 millimeters of rain later this week.
The New South Wales government estimated on Monday that 570,000 hectares of land was flooded in north central and north western areas, with "widespread" inundation causing "extensive damage to agriculture industries.”
Australia’s Gwydir Valley-region, the country’s largest cotton growing area, suffered its worst floods in 35 years.
Industry group Cotton Australia said widespread rainfall and associated flooding in cotton growing areas of northern New South Wales and Queensland states might result in some damage to crops but the extent of this is "still too early to call"
Crop trader Olam International has warned that 10% of Australia's crop could be damaged by the floods.
Meanwhile, cotton traders were looking forward to Thursday's closely-watched U.S. Department of Agriculture's World Supply and Demand Report. The data could show a downward revision to U.S. cotton output in the current marketing year as well as possible adjustments to world consumption.
Cotton traders were also awaiting the release of key Chinese inflation figures on Thursday, which was likely to show further signs of cooling. Chinese consumer prices probably rose 4% in January, compared with a 4.1% gain in December.
Cotton traders have been focusing on prospects for increased Chinese demand in recent months after the country started a cotton stockpile in September to protect domestic farmers' interests.
China is both the world’s largest producer and consumer of the fiber.
Elsewhere, on the ICE Futures Exchange, coffee futures for March delivery added 0.4% to trade at USD 2.2060 a pound, while sugar futures for March delivery eased down 0.05% to trade at USD0.2450 a pound.