Cotton sews up biggest rise in crop commodities — with further gains expected
Denver — The longest winning streak in two decades propelled cotton to 2017’s biggest increase among crop commodities, and hedge funds are ready for more gains in 2018. Of the nine components tracked by the Bloomberg Agriculture Subindex, only cotton and wheat contracts posted gains in 2017. The fibre led the way with an 11% advance as demand grew for US exports. Prices capped 2017 with 10 straight weekly gains, the best streak since 1998. Cotton was also one of the few crops that hedge funds got more positive on during the course of the year. Money managers held a net-long position, or the difference between bets on a price increase and wagers on a decline, of 102,402 futures and options as of December 26, according to US Commodity Futures Trading Commission (CFTC) data released on Friday. This is up from 76,052 at the end of 2016. Cotton’s stellar performance came as crop woes in Pakistan and India, two of the world’s biggest growers, raised prospects for US shipments. In the 2017...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.