The price of cotton jumped on Monday, driven by severe shortages in Pakistan and a steadily growing global demand for the fiber.
On the IntercontinentalExchange, No. 2 cotton futures for December delivery gained 1.533 percent to 99.75 cents per pound, after earlier reaching as high as 101.8 cents per pound.
"There is basically very little cotton right now," Tom Reardon, the president of Delta Brokerage in New York, told Bloomberg News.
"Mills are sweating blood over both prices and shortage of supplies," Mike Stevens, an independent trader in Louisiana, wrote in an investment note.
ICE Futures monitors U.S. stockpiles of the fiber, and inventories have dropped 98 percent since the beginning of June, to just 16,659 bales on September 17.
Pakistan's flooding has also complicated the picture; though it was the world's fourth-largest producer of cotton, its numerous textile mills consumed more than the country produced. With much of the nation's cotton crop under the floodwaters or completely ruined, Pakistan may have to import millions of pounds of cotton from international markets, making supply tighter than ever.
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