Dec. 17 (Bloomberg) -- Cotton futures rose to the highest in almost eight weeks in New York amid an improving demand outlook in China, the worldΆs largest consumer. Sugar, coffee and orange also advanced, while cocoa fell.
ChinaΆs manufacturing is expanding at a faster pace this month, a preliminary reading for a purchasing managersΆ index released by HSBC Holdings Plc and Markit Economics showed Dec. 14. The country plans to increase urbanization, the state-run Xinhua News Agency reported yesterday after the annual central economic work conference. Last week, the U.S. Department of Agriculture raised its forecast for global cotton demand.
“Good economic data from China helped demand ideas,” Jack Scoville, a vice president for Price Futures Group in Chicago, said today in a report. “Some leftover bullish sentiment from the USDA report” also supported prices, he said.
Cotton for March delivery increased 1 percent to settle at 75.85 cents a pound at 2:31 p.m. on ICE Futures U.S., after reaching 76.25 cents, the highest for a most-active contract since Oct. 23. The fiber has lost 17 percent this year as global inventories expanded.