Heavy rain spawned by Tropical Storm Lee punished crops in Louisiana and elsewhere in the Gulf Coast as rain is likely to continue through the week. States like Georgia and North Carolina also will continue enduring rain, the National Weather Service stated.
But demand for the soft fiber also is likely to rise. The International Cotton Advisory Committee said imports of cotton will bounce back to 8.1 million metric tons for the year that began August 1 as China is looking to restock government reserves of the soft commodity.
"The initial push was from the news on China, but there's also a perfect storm brewing here with technical charts and crop damage," broker Louis Barbera with VIP Commodities in New York told Bloomberg. "The fact of the matter is that we're going to have a small crop."
At 12:21 p.m. on Wednesday, cotton futures climbed 3.76 percent, a 4 cent rise to $1.1034 per pound.
Almost two-thirds of cotton crops in the U.S.' top cotton-growing state, Texas, range from "poor' to "very poor", according to Daily Markets. Roughly 63 percent of Texas' crops have suffered due to the worst drought in at least a century.
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