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Weak Dollar & Outlook for Demand Boost Cotton, Cattle & Hogs

May 18, 2010 at 23:03 by Vladimir Vyun

Cotton gained today on speculation that an unfavorable weather in China will decrease supplies of the fiber. Prices also rose after the dollar fell, increasing demand for some raw materials. July delivery for cotton gained $0.01 (1.2 percent) to $0.822 per pound by 9:49 on ICE Futures U.S. in New York.

Cattle advanced, while hogs fluctuated, boosted by the weaker dollar and by prospect for higher demand. Speculation arose that recent decline of futures because of concern about the stronger dollar was overdone. Prices may also climb as Memorial Day draws near, increasing demand for meat. Yet concern remains that consumer demand may fall with higher prices for meat, driving livestock futures down together with meat prices. August futures for cattle delivery rose $0.004 (0.4 percent) to $0.916 per pound as of 11:25 on the Chicago Mercantile Exchange. July futures for hog settlement lost $0.001 to $0.815 per pound on CME.

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