Cotton falls on concerns over future demand

Cotton prices fell 3.4 percent on Monday on concerns that the factories can reduce purchases due to the persistence of high prices and tight supplies.
Cotton for May delivery fell 7 cents to settle at 1.9749 dollars per pound.
Cotton prices have risen about 36 percent this year, partly on hopes that demand will remain strong.
Some factories have begun to change to synthetic fibers, however, partly because they are unable to absorb the high cost or have failed to fulfill orders for cotton, according to a recent report from Cotlook Ltd., which follows the industry.
"We will really start to see mills back more and more ... because they simply can not afford," Penson / FCG analyst Sharon C. Johnson said.
There is also speculation may erode demand in China due to continued government efforts to curb inflation, he said.
Other agricultural products were mixed ahead of an expected prognosis that the government should provide more details about what types of crops farmers plant this year.
Global supplies of corn, soybeans and cotton to be difficult. wheat supplies are abundant throughout the world, but there is a possibility that could be reduced due to adverse weather conditions may have affected the harvest of winter wheat in the Great Plains.
In May contracts, wheat prices fell 8 cents to settle at $ 7.2525 a bushel, corn lost 18.5 cents to $ 6.71 a bushel and soybeans fell 9.75 cents to $ 13.485 per bushel .
Oil prices fell after rebels captured several key ports Libyan oil and pledged to resume exports.
Much of this year's jump in oil prices has occurred in speculation about possible supply disruptions due to riots in several countries in the Middle East and North Africa.
Energy analysts are still concerned that the clashes could affect global supplies and make OPEC heavyweight Saudi Arabia and Iran in a conflict.
Benchmark crude for May delivery fell $ 1.42 to settle at $ 103.98 a barrel on the New York Mercantile Exchange.
In Nymex trading contracts for April heating oil lost 3.03 cents to settle at $ 3.0412, gasoline fell 2.19 cents to $ 3.0276 per gallon and natural gas fell 4.2 cents to $ 4.448 per 1,000 cubic feet.
May contracts for gold fell $ 6.30 to settle at $ 1419.90 an ounce, while silver added 3.9 cents to $ 37.088 an ounce.
May copper lost 6.9 cents to close at $ 4.35 a pound, June palladium fell $ 4.70 to $ 745.70 a pound and April platinum added $ 2.20 to $ 1747.80 an ounce.

(Source: http://news.yahoo.com/s/ap/20110328/ap_on_bi_ge/us_commodities_review_2)