Cotton futures in China, the biggest consumer of the textile, climbed to a record today on concern that falling domestic and international output will exacerbate a supply shortage.

Futures gained as much as 0.8 percent to 25,200 yuan a metric ton and was little changed at 25,020 yuan at the 11:30 a.m. local time break on the Zhengzhou Commodity Exchange. Cotton for December delivery in New York rose for a third day, gaining 1.1 percent to $1.17 a pound.

“China’s cotton futures keep setting new records amid concerns about a shortage,” Dong Shuzhi, an analyst at Jinshi Futures Co., said by phone from Shanghai today.

China will produce 550,000 metric tons less cotton than previously forecast in the year ending in July, Cotlook Ltd. said in a report. Output will fall to 6.4 million tons from 6.95 million tons a year earlier, the Birkenhead, England-based researcher said. World production will be 96,000 tons less than previously expected at 25.06 million tons, Cotlook said.

On Oct 15, futures in New York reached $1.198, the highest level since the fiber starting trading 140 years ago.

“Chinese output this year might be lower than the market’s previous expectation because of the recent low temperatures in main producing areas in the northern China,” Dong said. “Also, the government has sold out all the stockpiles by Oct. 20, so there’ll be no more government supply.”