Cotton fell the most in more than
eight weeks on concern that Europe’s debt crisis will slow
global growth and trim commodity demand. Orange juice rose.

The Standard amp; Poor’s GSCI Index of 24 raw materials fell
as much as 3.2 percent as European borrowing costs surged amid
mounting concern the region’s leaders will fail to stem fiscal
woes. World cotton demand will be 1.7 percent lower than
forecast last month, leaving a “massive” surplus of more than
3.5 million metric tons, according to Cotlook Ltd., a research
company in Birkenhead, England.

“The world’s going to have enough cotton to meet its
demands,” John Flanagan, the president of Flanagan Trading
Corp. in Fuquay-Varina, North Carolina, said in a telephone
interview. “Demand is slow because of the economic situation in
the US and Europe.”

Cotton for March delivery declined by the exchange’s 4-cent
limit, or 4 percent, to settle at 96.48 cents a pound at 2:46
pm on ICE Futures US in New York, marking the biggest loss
since Sept. 19.

The fiber has tumbled 56 percent from a record $2.197 on
March 7. A bale weighs 480 pounds (218 kilograms)

“The commercial sector is still ailing, as evidenced by
the complete lack of demand outside of China,” Andy Ryan, a
senior-risk management consultant at INTL FCStone Inc. in
Nashville, Tennessee, said in a report.

Orange-juice futures for January delivery advanced 1.8
percent to $1.7185 a pound in New York, the biggest gain since
Oct. 24. The commodity has advanced 13 percent in the past year.

Inventories of frozen orange juice monitored by ICE have
dropped 59 percent to 24.4 million pounds from a year earlier,
exchange data show.

“Supplies have been a little tight,” Jack Scoville, a
vice president at Price Futures Group in Chicago, said in a
telephone interview.

To contact the reporter on this story:
Blair Euteneuer in Chicago at
beuteneuer@bloomberg.net

To contact the editor responsible for this story:
Steve Stroth at
sstroth@bloomberg.net

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  Tags : Commodity
  Categories : Uncategorized