Feb. 19 (Bloomberg) -- Cotton climbed to the highest in nine months on signs of robust demand in China, the worldΆs largest user.
As of Feb. 7, cotton-export sales by the U.S. to China totaled 2.18 million running bales in the season that started on Aug. 1, up 14 percent from a year earlier, according to data from the U.S. Department of Agriculture. Futures have rebounded 30 percent since reaching a 31-month low in June on signs of improved demand and smaller global crops.
“ThereΆs tightness because Chinese imports are heavier than expected,” Chris Kramedjian, a fiber and textile consultant at INTL FCStone LLC, said in a telephone interview from Nashville, Tennessee. “ThereΆs not enough cotton freely available.”
Cotton for May delivery rose 1.1 percent to settle at 84.13 cents a pound at 2:31 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 84.87 cents, the highest for a most- active contract since May 10.
China will import 14 million bales this year, the USDA said on Feb. 8. ThatΆs higher than the 12.5 million forecast in January. A running bale weighs 500 pounds, or 227 kilograms. A bale weighs 480 pounds.