Cotton Prices Climb on Prospect of Tight Supplies
Wednesday, April 11th, 2012
Cotton prices rose Wednesday on the prospect of tighter supplies over the next few months.
The U.S. Agriculture Department said Tuesday that it expects U.S. cotton stockpiles to total 3.4 million bales by the end of July. The estimate was 500,000 bales less than the agency's March forecast but nearly 31 percent more than inventories at the end of July 2011.
Export demand has been strong in recent weeks which also encouraged investors, Vision Financial Markets LLC analyst Boyd Cruel said.
Most analysts believe global supplies will be more plentiful after this summer's crop is harvested. Long-term, demand appears weak.
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