Cotton futures climbed to a record in New York on speculation that demand is increasing in China, the world’s largest importer, and as flooding hurt crops in Australia.

China’s textile mills increased yarn output by 14 percent to 27 million metric tons last year, a government commission said last month. Australia, the world’s fourth-largest exporter, will harvest 6.2 percent less than a December estimate, a government agency said yesterday. Cotton prices on ICE Futures U.S. have more than doubled in the past year.

“Strong buying and limited supplies is a very good combination to push prices higher,” said Gary Raines, an economist at FCStone Fibers & Textiles in Nashville, Tennessee.

Cotton futures for May delivery rose the exchange-imposed limit of 7 cents, or 3.7 percent, to settle at a record $1.9493 a pound at 2:40 p.m. on ICE in New York. The price has climbed 16 percent this month.

China imported 2.84 million tons of the commodity last year, the most since 2006, according to customs figures.

The fiber may more than double to $5 by the end of May, WorldCrops.com, a website by VM Group in London, said today.

In the year ending July 31, the U.S. is forecast to be the leading exporter, followed by India and Uzbekistan, U.S. Department of Agriculture data show.