Cotton stocks drop as weak risk sentiment slams futures

Unifi

19/07/2021 16:25

** Cotton products makers' shares slide, tracking a fall in
the commodity on weaker risk sentiment 
    ** ICE cotton contracts for December  CTZ1  fall 3.6% to
86.70 cents per lb, as expectations of surging COVID-19 cases
make global markets shudder   COT/N   MKTS/GLOB 
    ** "We're teeing off the collapsing stock markets ... and
that's based on the fear that COVID or its variants are on the
rise" says Keith Brown, principal at cotton brokers Keith Brown
and Co
    ** "We're not actually trading (cotton) fundamentals, we're
trading on the (virus) fears" - Brown
    ** Albany International  AIN.N  drops 2.7%, Unifi  UFI.N 
slides 4% and Culp  CULP.N  sheds 3.2%
    ** iPath Series B Bloomberg Cotton Subindex Total Return ETN
 BAL.N , which tracks the price of cotton, has risen ~18% YTD 

 (Reporting by Aaron Saldanha and Bharat Govind Gautam in
Bengaluru)
 ((Aaron.Saldanha@thomsonreuters.com; +91 80 6749 1130))