Today commodities prices of Cotton, coffee, sugar rises due to differences in supply and demand

Commodity prices of cotton, coffee and sugar all rises because of questions about the existing supply and demand for commodities trio. After two days of declines, cotton continued rally that pushed prices to the highest level since the Civil War to prevent shipment of the plant.

The price of cotton for December delivery rose 3.58 cents to $ 1.2526 per pound. Earlier this week reached a high $ 1.305 a pound before it retreated a bit.

Coffee prices also rose Friday due to ongoing supply concerns. But while concerns about the supply of weather-related cotton, coffee pure logistics of supply concerns and as such may be temporary, said Patton. Backup at ports in Brazil have kept copies of which were sent abroad, which has helped prices. Coffee for December delivery rose 6.85 cents, or 3.5 percent, to settle at $ 2.0345 per pound. The delay shipment of coffee is the result of exporters into busy shipping out of sugar, which has rallied back near 29-year high. Sugar prices rose to a peak at the beginning of the year on concerns about supplies before falling during the summer when their fears subsided.

The price of sugar for March delivery rose 0.41 cents to settle at 29.12 cents per pound. The price of sugar has nearly doubled since May, but they are in one cent of the highest hit in late January.

Meanwhile, most metals continue to move them higher. December gold rose $ 15.10 to settle at $ 1,357.60 an ounce, while silver jumped 68.9 cents to $ 24.564 an ounce. Copper is one of several metals fell, declining 5.4 cents to settle at $ 3.7335 per pound.

Elsewhere, grain and bean prices. Wheat for December delivery fell 1 cent to $ 7.1725 a bushel, while corn rose 52 cents to settle at $ 5.8200 per bushel. Soybeans for January delivery unchanged at $ 12.36 per bushel.
Commodities are priced in dollars. Any action that would weaken the dollar as bond-buying program should help drive investment demand in commodities.

Cotton surged by the daily maximum to trade near a record in New York on concern that global supplies may be curbed by weather damage to crops in China and the U.S. Futures jumped to an all-time high in China.

Cotton for December delivery advanced by the daily limit of 4 cents to $1.2926 a pound on ICE Futures U.S. and traded at that level at 1:40 p.m. Tokyo time. The contract reached $1.305 on Oct. 26, the highest level since the fiber started trading 140 years ago.

?Adverse weather in China and the U.S. has spurred a buying spree,? Toshimitsu Kawanabe, an analyst at Tokyo-based commodity broker Central Shoji Co., said today. ?Cotton is one of the most-favored commodities among speculative funds.?

Cotton rose 23 percent in October, the biggest monthly gain since June 2007. The price has jumped 71 percent this year as global supplies trail demand, making it the best-performing commodity on the Thomson Reuters/Jefferies CRB Index.

China?s harvest will drop to 6.4 million tons in the year that began Aug. 1, 7.9 percent lower than a year earlier, said Cotlook Ltd., a research firm based in Birkenhead, England. That forecast was made before the China Meteorological Center said Oct. 25 that a cold front moving across the nation might hamper harvesting and reduce fiber quality.

Before the cold spell, China?s output was forecast to be 4.03 million tons lower than estimated consumption, according to the U.S. Department of Agriculture. Purchases by the world?s most-populous nation could further drain global stockpiles projected by the USDA to drop to a 14-year low in the coming year.

Crops in the U.S., the largest shipper, were damaged by a hailstorm in Texas.

Cotton for May delivery on the Zhenzhou Commodity Exchange jumped by the daily 5 percent limit to a record 28,585 yuan ($4,282) a ton before trading at 28,580 yuan at the 11:30 a.m. local-time break.

Prices are not able to get out of the reach of that supply and demand remains high warm. Traders are also waiting to see how big a bond-buying program of the Federal Reserve could announce next week. Such a program may affect the dollar, which could help dictate trading commodities.

India's coffee exports rose by 67 per cent to 25,000 tonnes in October, the first month of the 2010-11 crop year, on the back of strong global demand and lower prices.

"We have exported 25,000 tonnes of coffee in October, this year, against 15,000 tonnes in the same period in 2009," a senior Coffee Board official told PTI today.

Overall, coffee exports during the January-October period of this year have also risen sharply to 2,51,355 tonnes from 1,57,824 tonnes in the year-ago period, he said.

The realisation from the export of one tonne of coffee was Rs 1.07 lakh during October, he added. The coffee year runs from October to September.

A commodities report from the National Australia Bank is predicting sugar prices will jump above 30 US cents a pound before the end of the year.

Currently, 80 per cent of Australian sugar produce is exported across the globe.

Queensland Canegrowers chief executive Steve Greenwood says prices have almost doubled since May because of struggling crops in South America and India.

"Brazil has been having some challenges in terms of its own production in getting it out and getting it on the market and the other one is India," he said.

"India itself has had some challenges in getting in the sugar industry, so what we've got, we've got a bit of a supply deficit."