Cotton Drops on India’s Yarn-Export Plan; Orange Juice Rises

Cotton declined for the fifth time in six sessions after India, the world’s second-biggest producer, lifted restrictions on yarn exports. Orange juice gained.

The trade ministry yesterday said overseas yarn shipments no longer needed government permission. On Dec. 1, India said it was capping such exports at 720,000 metric tons in the year ending Sept. 30 to bolster domestic supplies.

“This definitely is bringing the market down,” said Louis Barbera, a broker at VIP Commodities in New York.

Cotton for May delivery declined 4.68 cents, or 2.3 percent, to settle at $1.9555 a pound at 2:39 p.m. on ICE Futures U.S. in New York. The commodity dropped 4.4 percent this week, the third decline in four weeks.

India is the second-biggest cotton exporter, behind the U.S. China is the largest producer.

Orange-juice futures for May delivery rose 0.1 cent to $1.629 a pound on ICE.

(Source: http://www.bloomberg.com/news/2011-04-01/cotton-drops-on-india-s-yarn-export-plan-orange-juice-rises.html)