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Cotton & Copper Weakened by EU Crisis & Stronger Dollar

May 20, 2010 at 19:29 by Vladimir Vyun

Cotton halted its rally and dropped today after Euro-zone debt crisis caused commodity prices to decline. Prices were also influenced by the stronger dollar as it curbed exports from the U.S., making U.S. goods too expensive to overseas buyers. Economists weren’t concerned by this move of prices as they consider such correction after rally quite normal. July delivery for cotton dropped $0.0106 (1.3 percent) to $0.8222 per pound as of 10:09 on ICE.

Copper prices went down after the dollar was boosted by troubles in the European Union. China tries to slow down growth of its economy, lowering demand for copper. Inventories of LME-monitored copper rose 3.3 percent today on speculation that prices dropped too much this month while stockpiles of the metal are dwindling. July futures for copper delivery went down $0.0465 (1.6 percent) to $2.913 per pound by 10:43 on the COMEX in New York.

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