Cotton futures rose for the sixth time in seven sessions on rising demand for supplies from the U.S., the world’s biggest exporter.
Since Aug. 1, the U.S. has exported 281,000 metric tons of upland cotton a week on average, the government said on Oct. 7. That’s up 31 percent from last year. China, the biggest consumer, bought 56 percent of last week’s shipments. Yesterday, futures extended a rally to a 15-year high.
“We’re exporting as fast as it’s coming out,” said Louis Barbera, a broker at VIP Commodities in New York. Mills are “happy to buy it,” he said.
Cotton for December delivery rose 1.29 cents, or 1.2 percent, to settle at $1.1087 a pound at 2:32 p.m. on ICE Futures U.S. in New York. Yesterday, the fiber reached $1.1238, the highest level since June 19, 1995. The price has jumped 47 percent this year.
The quality of some cotton may be “undesirable to the spinning mills,” further limiting supplies, said Mike Stevens, an independent trader in Mandeville, Louisiana. The fiber from U.S. fields may be too mature, he said.
U.S. crop conditions deteriorated in the week ending Oct. 10 with 55 percent of the fiber in good or excellent condition, down from 56 percent in the previous week, the Department of Agriculture said yesterday.
The Cotlook A Index, which reflects the average of the five cheapest cotton prices offered at Far East ports, rose to a record $1.252 a pound yesterday. The gauge dropped 1 percent today.