Cotton futures tumble on easing global supply concerns

Forexpros - Cotton futures were sharply lower on Tuesday, declining for the first time in three days as easing concerns over global cotton supplies weighed on prices.
On the ICE Futures U.S. Exchange, cotton futures for October delivery traded at USD1.2664 a pound during European morning trade, tumbling 2.1%.
It earlier fell as much as 2.5% to a daily low of USD1.2542 a pound. 
The U.S. Department of Agriculture said in its weekly crop progress report published Monday that approximately 27% of U.S. cotton crops were rated in 'good' to 'excellent' condition as of June 26, up from 24% in the previous week.
In Mississippi, the third largest cotton-growing state in the U.S., 66% of the crop was rated 'good' to 'excellent', while 13% was rated 'very poor' to 'poor', as favorable weather over the past week aided crops.
Nearly 53% of crops in the third largest U.S. producer Missouri were in 'good' to 'excellent' condition. In contrast, only 6% were rated 'very poor'.
The U.S. is the world's second largest cotton producer and the biggest exporter of the fiber.
Meanwhile, global financial service provider Barclays warned in a report late Monday that prices could be pressured further amid a favorable outlook for India's cotton crop, the world's largest producer.
The lender said in a report that, "The recent pick-up in India's monsoon rains, coupled with a surge in plantings, bodes well for the country's production prospects."
Earlier in June, India's government raised the cap on cotton exports by one million bales to a total of 6.5 million after the country's agriculture ministry projected a record harvest in the 2011-12 season.
India had limited cotton exports in April of 2010 after domestic prices rose sharply, taking a toll on local textiles producers.  
Elsewhere, wheat for September delivery jumped 1.6% to trade at USD6.5975 a bushel, corn for September delivery rose 0.75% to trade at USD6.4863 a bushel, while soybeans for August delivery added 0.35% to trade at USD13.2638 a bushel
Read more: http://community.nasdaq.com/News/2011-06/cotton-futures-tumble-on-easing-global-supply-concerns.aspx?storyid=82772#ixzz1Qfau9I2i