Cotton, sugar, futures advance

The dollar was down 1.6 per cent week against a basket of six major currencies, enhancing the appeal of goods in the US, the world's biggest cotton shipper.

New York: Cotton and sugar climbed as concerns eased that global demand for commodities may slump. Coffee also gained, while cocoa and orange juice declined.

In the first three days of the week, cotton tumbled 9.7 per cent and sugar plunged 10 per cent after an earthquake and tsunami killed thousands in Japan and sparked explosions at nuclear plants, threatening the global economy. The Thomson Reuters/Jefferies CRB Index of 19 raw materials gained as much as 1.1 per cent yesterday.

"The world is looking now at commodities and saying there is no reason for prices to be going down," said John Flanagan, the president of Flanagan Trading Corp. in Fuquay-Varina, North Carolina.

Cotton for May delivery surged by the exchange limit of 7 cents, or 3.6 per cent, to settle at $1.9912 a pound at 2:49 p.m. on ICE Futures US in New York. The price declined 2.8 per cent this week. The fibre reached a record $2.197 on March 7 as global demand outstripped supplies.

The dollar was down 1.6 per cent week against a basket of six major currencies, enhancing the appeal of goods in the US, the world's biggest cotton shipper.

"A weakened dollar makes export commodities cheaper and more desirable," Flanagan said.

Raw-sugar futures for May delivery climbed 0.97 cent, or 3.6 per cent, to 27.71 cents a pound. This week, the price dropped 4 percent. The commodity reached a 30-year high of 36.08 cents on February 2.

Arabica-coffee futures for May delivery advanced 5.3 cents, or 2 per cent, to $2.762 a pound. The price gained 0.7 per cent this week. On March 9, the commodity reached a 14-year high of $2.9665.

Cocoa futures for May delivery plunged $155, or 4.7 per cent, to $3,127 a metric ton in New York. This week, the price plummeted 8.4 per cent, the most since mid-June 2009.

Orange-juice futures for May delivery slid 1.4 cents, or 0.8 per cent, to $1.6345 a pound. This week, the price dropped 2.7 per cent.

(Source: http://gulfnews.com/business/markets/cotton-sugar-futures-advance-1.780024)