DJ MARKET TALK: Cotton Hits Record High, Then Falls Its Limit

DJ MARKET TALK: Cotton Hits Record High, Then Falls Its Limit

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1449 EDT [Dow Jones] - Cotton futures hit an all-time high overnight but
quickly backed off and fell the maximum allowable amount as funds booked their
profits. Prices hit $1.1980 a pound shortly after the market opened, the
highest point since the Civil War. Analysts said rains in Asia that cut into
major producers' crops, a post-recession rebound in demand and a weakening
dollar combined to spark cotton's precipitous rise. Profit-taking pushed prices
lower throughout the day, but analysts are hesitant to say the market hit its
top given continued Chinese mill buying. ICE December futures settled 5 cents,
or 4.4%, lower at $1.0987 a pound.

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