COTTON: futures traded around 135 USd/Lbs in April, down from an almost 10-year high of 142 USd/Lbs hit in late March as investors ditched some long positions following a slightly bearish WASDE report.
The USDA now projects global production 340,000 bales higher, with increases for Pakistan and Greece. Adding to the bearish tone, a 500,000-bale decline in China’s expected consumption resulted in a similar reduction in the worldwide estimates, which now stand at 124.1 million.
Still, fundamentals in the cotton complex continue to be supported by expectations of lower domestic supplies due to drought in the US planting areas and the rising cost of fertilizers.
