Futures Market News
Cotton futures strike top price in three weeks
Mar 27, 2012 03:41 PM
The price of cotton futures pushed to their top value in 21 days on Tuesday, propelled by speculative buying, according to Reuters.
The soft fiber's climb also is linked with concerns about strong sales in the U.S. leading to a tighter supply in the next several weeks. Tuesday's climb neared an increase of 2 percent, a 1.68 cent lift.
"It's a little bit of short-covering anxiety," president Keith Brown with commodity firm Keith Brown in Georgia told Reuters.
At 2:41 p.m. on Tuesday, cotton futures rose 1.85 percent, a 1.68-cent gain to 92.59 cents per pound.
The record price for the soft fiber is $2.197 per pound as established in early March of last year.
The Daily Times reports China, host of the globe's most rapidly developing economy, is showing some interest in purchasing cotton produced by Pakistan.
Parts of China, also the world's leading producer and consumer of the soft commodity, is presently undergoing parched conditions, Brown told Reuters.
Early last month, the National Cotton Council cited this year's cotton sowings in the U.S. at 13.63 million acres, 7.4 percent reduction from the year prior.
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