The price of cotton increased for a third-straight day as the globe's second largest grower of the soft fiber said it would limit exports of yarn, Bloomberg reports.
The maximum amount of cotton yarn that India will export is 720,000 metric tons as a method of increasing domestic supplies, according to the Indian Textiles Ministry.
"News from India about capping yarn exports is bullish for the market," Sharon Johnson, a senior analyst at Penson Futures in Atlanta, told Bloomberg.
Another factor pushing up cotton's price is the expansion of Chinese manufacturing, which widened most quickly in November of the past seven months, according to government data. Prior to Wednesday, cotton's price rose 55 percent this year, largely due to China's heavy demand.
Cotton for March delivery increased nearly three cents to $1.2023 just before 11 a.m. on ICE Futures U.S. in New York. The price of cotton has increased five percent during the past 48 hours of trading.
"Manufacturing numbers out of China are supporting the commodities market overall," Johnson said.
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