Demand for cotton by China, the world's biggest user of the commodity, influenced its price to rise in New York on Friday, the fourth straight day, Bloomberg reports.
The country's own supply was damaged by an October cold spell, which might have forced it to import from world stockpiles, where the supply already stands at a 14-year low. While exports of cotton from the U.S. have climbed, weather also has damaged Indian cotton crops. During the past year, cotton prices have at least doubled.
"The export-sales report of last week shows, yes, there still is demand," John Flanagan, president of Flanagan Trading Corp. in Fuquay-Varina, North Carolina, told Bloomberg about surging prices.
Cotton for December delivery increased 1.78 cents, settling at $1.4223 a pound at 3 p.m. Friday. Earlier in the day, the fiber climbed to $1.446, which is the highest it's been since it began trading in the 1870s.
"Export sales, feeding the seemingly inexhaustible Chinese appetite for cotton, continue abnormally strong," O.A. Cleveland, an analyst at cottonexperts.com in Starkville, Mississippi, said in an emailed noted today.
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