Jan. 11 (Bloomberg) -- Cotton prices jumped the most allowed by ICE Futures U.S. after the worst floods in half a century damaged crops in Australia, the world’s fourth-largest exporter. Orange juice fell.
Cotton crop losses total about 300,000 bales and damage may worsen if wet weather continues, the Australian Cotton Shippers Association said today. The industry group had forecast record production of more than 4 million bales before the floods. Prices have almost doubled in the past 12 months as growers struggled to meet rising demand from China.
“News from Australia is certainly not good,” said Mike Stevens, an independent trader in Mandeville, Louisiana. “The market is all stirred up.”
Cotton futures for March delivery rose by the exchange limit of 4 cents, or 2.8 percent, to $1.4725 a pound at 9:01 a.m. on ICE in New York. A close at that price would mark the biggest gain since Dec. 21.
For the year started Aug. 1, the U.S. is forecast to be the largest exporter, followed by India and Uzbekistan, government data show.
Orange-juice futures for March delivery lost 0.7 cent, or 0.4 percent, to $1.7805 a pound on ICE. Before today, prices were up 9.3 percent since the start of the year amid concern that frigid weather would damage crops in Florida, the biggest producer after Brazil.
For the harvest that began in October and runs through June, the U.S. Department of Agriculture may say tomorrow that Florida’s output will be 140.4 million boxes, the average estimate in a Bloomberg News survey of six analysts. Last month, the government forecast 143 million.
