Sandy's rain firms cotton prices slightly

AS HURRICANE Sandy moved towards the New York financial district on Tuesday, few traders chose to hang around the Lower Manhattan financial district, resulting in low volume and a dull trading session.

Several US exchanges were closed and expect to remain closed on Tuesday.

ICE was open but the exchange building was closed.

Cotton moved either side of unchanged before drifting higher into the close.

Part of the reason for this minor firming may be due to the impact of rains across the north-east portion of the crop.

There are 500,000 acres of crop in Virginia and North Carolina that are open to impacts from this weather event.

To date the rains have been about 50mm, which is less than anticipated.

Commentators suggest the weather may have more of an indirect effect on the market via its impacts on losses incurred by retailers due to slower sales, particularly if the effects continue into the crucial holiday shopping period.

However, aside from the effects of Sandy, the weather in the US Cotton Belt will be fine, with temperatures well below normal earlier in the week.

Topics:  comment commodities markets namoi cotton prices

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