Investing.com – Cotton futures were up for a second day on Wednesday, climbing to a three-day high on mounting concern that adverse weather in the U.S. and China would further tighten global supplies.
On the ICE Futures U.S. Exchange, cotton futures for July delivery traded at USD1.5963 a pound during European morning trade, gaining 0.59%.
It earlier rose to USD1.6243 a pound, the highest price since May 27.
The U.S. Department of Agriculture said in its weekly crop-progress report on Tuesday that approximately 73% of U.S. cotton crops were planted as of May 29, down from 77% a year earlier and below the five-year average of 76%.
In Texas, the largest cotton-growing state in the U.S., nearly 65% of cotton crops were planted as of last week, compared to 69% a year earlier, while crops in Alabama, the third-largest grower were 77% planted, lower than the five-year average of 87%.
Meanwhile, the U.S. Drought Monitor Center said that conditions in Texas during the first week of June were expected to range from “abnormally dry” to “exceptional” drought, the most severe ranking.
Elsewhere, severe drought conditions throughout key cotton-growing regions in central China added to concerns over declining supplies.
China’s Office of State Flood Control and Drought Relief said that nearly seven million hectares of cotton-growing land in Hunan and Jiangxi provinces were affected by the drought.
Much of the region has seen rainfall 30% to 80% below normal in recent months, with the dry conditions raising concerns some farmers may abandon the summer planting season.
China is the world’s largest cotton producer and consumer, while the U.S. is the world’s biggest exporter of the fiber.
Meanwhile, wheat for July delivery extended sharp losses from the previous session, falling 0.85% to trade at USD7.7375 a bushel, corn for July delivery eased up 0.05% to trade at USD7.4885 a bushel, while soybeans for July delivery added 0.1% to trade at USD13.7858 a bushel during European morning trade.
On the ICE Futures U.S. Exchange, cotton futures for July delivery traded at USD1.5963 a pound during European morning trade, gaining 0.59%.
It earlier rose to USD1.6243 a pound, the highest price since May 27.
The U.S. Department of Agriculture said in its weekly crop-progress report on Tuesday that approximately 73% of U.S. cotton crops were planted as of May 29, down from 77% a year earlier and below the five-year average of 76%.
In Texas, the largest cotton-growing state in the U.S., nearly 65% of cotton crops were planted as of last week, compared to 69% a year earlier, while crops in Alabama, the third-largest grower were 77% planted, lower than the five-year average of 87%.
Meanwhile, the U.S. Drought Monitor Center said that conditions in Texas during the first week of June were expected to range from “abnormally dry” to “exceptional” drought, the most severe ranking.
Elsewhere, severe drought conditions throughout key cotton-growing regions in central China added to concerns over declining supplies.
China’s Office of State Flood Control and Drought Relief said that nearly seven million hectares of cotton-growing land in Hunan and Jiangxi provinces were affected by the drought.
Much of the region has seen rainfall 30% to 80% below normal in recent months, with the dry conditions raising concerns some farmers may abandon the summer planting season.
China is the world’s largest cotton producer and consumer, while the U.S. is the world’s biggest exporter of the fiber.
Meanwhile, wheat for July delivery extended sharp losses from the previous session, falling 0.85% to trade at USD7.7375 a bushel, corn for July delivery eased up 0.05% to trade at USD7.4885 a bushel, while soybeans for July delivery added 0.1% to trade at USD13.7858 a bushel during European morning trade.