Cotton approached its record price on Thursday as concerns mounted that China will acquire mass amounts of the global demand and deplete the supply, Bloomberg reports.
Inclement weather also drove up the price as storms in the United States and coldness in China prompted cotton to climb as much as 1.9 percent to $1.3176 per pound on ICE Futures U.S. while gaining for a third-straight day.
"Spinning mills are having difficulty securing enough volume, indicating very tight supply," Han Sung Min, a broker at Korea Exchange Bank Futures Co. in Seoul, told Bloomberg. "Mills in China keep importing following higher domestic prices."
The price of cotton sharply increased 23 percent in October, representing its biggest gain in one month since June 2007. Its price soared 73 percent this year, establishing itself as the commodity with the best performance on an industry index.
With the cold and wet weather last week, Chinese production was projected to be 18.5 million bales short, which would lead to higher imports, according to the U.S. Department of Agriculture.
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