Cotton futures rose the most in a week as demand increased at textile mills in China, the world’s biggest user.
China has been selling fiber from reserves in auctions in the past two weeks to meet mill demand, the China Cotton Association said. The country’s markets have been closed since Oct. 1 in observance of the National Day holidays and will open tomorrow. Cotton futures soared 33 percent in the third quarter on concern that global consumption will outpace supplies.
“Regardless of the fact that they’re closed, there is still inquiry about cotton out of China,” said Andy Ryan, a senior-risk management consultant at FCStone Fibers & Textiles in Nashville, Tennessee.
Cotton for December delivery rose 1.19 cents, or 1.2 percent, to 99.75 cents a pound at 2:30 p.m. on ICE Futures U.S. in New York, the biggest gain since Sept. 28.
The China Cotton Association said on Sept. 27 that demand topped domestic production by 3.6 million metric tons in the year ended Aug. 31. The U.S. Department of Agriculture will update its estimates for U.S. and world production and usage on Oct. 8.
The U.S. is the biggest exporter.