Cotton futures jumped to a 15-year high after the U.S. Department of Agriculture boosted a forecast for global demand.

Global use will increase to 120.8 million bales in the year that began Aug. 1, up 0.2 percent from last month’s estimate, the USDA said today. Worldwide output will be 116.7 million bales, down from the September forecast of 117 million. For the second straight day, cotton futures jumped 4 cents a pound, the most allowed by ICE Futures U.S.

“The bullish news was in the world numbers,” said John Flanagan, the president of Flanagan Trading Corp in Fuquay- Varina, North Carolina. “High prices are not rationing out demand yet.”

Cotton for December delivery rose 3.42 cents, or 3.3 percent, to settle at $1.0717 a pound at 2:30 p.m. on ICE New York. Earlier, the price reached $1.0775, the highest level for a most-active contract since June 19, 1995.

This week, the commodity jumped 9.3 percent, the most since mid-February. Inventories monitored by ICE tumbled 47 percent in the past three days.

The fiber is up 68 percent in the past 12 months, while stockpiles plunged 97 percent.

Output in the U.S., the world’s biggest exporter, will be 0.2 percent more than forecast a month ago after beneficial weather boosted yields in Texas and the Mississippi River Delta, the USDA said.

A bale weighs 480 pounds, or 218 kilograms.

Chinese Demand

Prices also climbed on renewed demand from China, the biggest buyer, said Gary Raines, an economist at FCStone Fibers & Textiles in Nashville, Tennessee. China’s markets opened after National Day holidays.

China is forecast to boost imports 19 percent to 13 million bales next year, the USDA said. Demand for the fiber soared after excessive rains damaged crops and delayed this year’s harvest.

The nation will produce 31.5 million bales, a 3.1 percent drop from September’s projection, the agency said.