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Decline of Copper & Cotton Prices

October 22, 2009 at 21:56 by Vladimir Vyun

Copper tumbled from a 13-month high in New York as the dollar rebounded, lowering the attractiveness of the metal as an inflation hedge. The dollar went up on speculation that China may cut investments to stimulate economy as the country’s gross domestic product grew fastest in a year in the third quarter and inflation sped up. Production of copper and aluminum in China increased 8 percent in September from the prior month, leading to concern about excess production. December delivery for copper slid $0.0345 (1.1 percent) to $3.0015 per pound by 9:48 on the New York Mercantile Exchange’s Comex unit.

Cotton prices slumped this week as the dollar gained, eroding the attractiveness of commodities from the U.S. The dollar rebounded against the euro after reaching a 14-month low yesterday. Declining exports also have negative impact on cotton prices. December futures for cotton delivery slumped $0.0042 (0.6 percent) to $0.6796 per pound as of 11:59 on ICE Futures U.S. in New York.

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