Wednesday saw cotton futures gain in value for a second consecutive trading session, and some traders said the soft fiber might be building momentum, Reuters reports.
After having scraped their lowest price in one month on Monday, cotton futures gained more than 2 percent of their value on Wednesday. Despite the gains, cotton futures are significantly lower than their record price, which is $2.197 per pound as established on March 7 of 2011.
"It's not a fundamental (advance)," independent cotton analyst Mike Stevens in Louisiana told Reuters. "Once the buying ran prices to limit, hedgers took advantage of the rally particularly in the December contract."
At 2:33 p.m. on Wednesday, cotton futures gained 2.01 percent, a 1.77 cent lift to 90.02 cents per pound.
Bloomberg reports planting of cotton in the U.S. is ahead of the five-year average, which the U.S. Department of Agriculture attributed to a warm March and a wet April. Both of those factors enhanced the soil for growing season.
Particular regions of the Southeast U.S. that grow the soft fiber had increased rain overnight from Tuesday to Wednesday, which is beneficial to cotton, according to The Cattle Network.
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