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Cotton & Oil Fall on Slow Economic Recovery; Cocoa Goes Up

January 15, 2010 at 0:06 by Vladimir Vyun

Cotton prices dropped on speculation that the U.S. economy may be slow to rebound, cutting demand for the fiber. Retailer sales in the U.S. unexpectedly declined in December and unemployment is expected to average 10 percent in 2010, indicating that a pace of an economic rebound is slow. March futures for cotton delivery fell $0.0082 (1.1 percent) to $0.7261 per pound as of 11:22 on ICE.

Crude oil tumbled as retail sales fell and jobless claims increased, signaling that the economic recovery is slow. Weekly jobless claims rose as much as 2.5 percent, to the highest level in five weeks. Analysts think that fundamentals may force crude prices down to the $70 per barrel level after the end of the winter. February delivery for crude oil slid $0.26 (0.3 percent) to $79.39 per barrel by 14:30 on the New York Mercantile Exchange.

Cocoa reached the record in almost a month in London on outlook that demand will be supported by increasing usage in Europe. Cocoa usage in the Europe jumped 0.6 percent to 351,316 tons in the fourth quarter and indicator of demand, cocoa grindings, rose as much as 9.4 percent to 95,834.2 metric tons in Germany in the period. March delivery for cocoa added 0.4 percent to $3,403 per metric ton at 17:39 on ICE.

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