Reductions to a global surplus spurred sharp gains for cotton futures on Monday as the soft commodity marked an eighth day of gains during the past nine trading sessions, according to Bloomberg.
Cotlook Ltd., which publishes a cotton index, said late last week that global supplies of the soft fiber will outpace demand by more than 3.5 million metric tons for the year that began on August 1 of last year. That reduces the December forecast of more than 3.6 million metric tons.
“My guess is the speculators will get even longer,” states an email to Bloomberg authored by senior cotton specialist Sharon Johnson with Knight Futures in Georgia. “I expect prices to move higher over the next several weeks.”
At 1:01 p.m. on Monday, cotton futures rose 0.75 percent, a 0.006 cent increase to 0.08112 per pound.
Fibre2Fashion reports the soft commodity began its recent upward drive earlier this month when the U.S. Department of Agriculture issued a report noting heavy volume and increasing open interest.
The record price for cotton futures is $2.197 per pound as established on March 7, 2011.
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