Cotton Hits 3-Month High As Global Demand Surges

The USDA Crop Report was released
today, finally sparking interest in commodities markets that had been quiet for
the past few days.
2005/6 US ending stocks estimates were increased
for Corn, Soybeans and Sugar, while they were reduced for Wheat and Cotton (full
). The news drove Cotton to a 3-month high as world demand is
increasing faster than record breaking harvests.

The increase in sugar surprised traders after so much was lost
in Louisiana following hurricane Katrina but a surge in imports more than
covered the loss of production.

The EIA released its
Short-Term Outlook
and warned that “potential adverse impacts of an active hurricane season on
domestic energy supply and prices are unfortunately being reflected in the
challenging realities brought about by Hurricanes Katrina and Rita.” The report
had little affect on the energy markets, none closing +/- 1% in a mixed

All the metals pulled back from multi year/month highs, most
notably copper which fell more than 2% from its latest all-time high.

The US Dollar Index also closed lower, along with treasuries.

Chart courtesy of

TradingMarkets Commodities Watch List

Price Price Change % Change


Crude Oil (CL) 63.61

Heating Oil (HO) 201.57

Unleaded Gas (HU) 182.76

Natural Gas (NG) 14.43



Gold (GC) 476.60

Silver (SI) 783.80

Copper (HG) 179.35



Corn (C)


Wheat (W) 347.50

Soybeans (S) 589.00



Sugar (SB) 11.73

Coffee (KC) 103.40

Cocoa (CC) 1349.00

Frozen Orange Juice (JO) 101.60

Cotton (CT) 55.90

Lumber (LB) 283.30



Lean Hogs (LH) 62.38

Live Cattle (LC) 91.20


Economic News

MBA Purchase Applications:

Purchase Index – Actual 469.5

Ashton Dorkins