By Julie Wernau

Cotton futures gained as reports of damage from Tropical Storm Hermine came in from major cotton growing regions in the U.S.

Cotton for December delivery, the most active contract, was up 2% at 69.12 cents a pound on the ICE Futures U.S. exchange, on track for its highest close since Aug. 12.

Georgia is the second largest cotton producer in the U.S. behind Texas and 30% of cotton bolls there are open, according to the USDA, making developing cotton more vulnerable to rain, dirt and other environmental factors that can lower cotton quality.

"I've had some reports from very south Georgia where there's been wind damage to the crop," said Richey Seaton, executive director of the Georgia Cotton Commission.

Commerzbank said in a note that as long as hurricane season continues and the cotton crop has not yet been harvested, concerns about storm damage and flooding will control the market.

In the international market for cotton, the International Cotton Advisory Committee lowered its estimate for global cotton ending stocks for the current marketing year.