By Julie Wernau

Cotton futures jumped to a fresh two-month high Monday as an unexpected boost in demand for the fiber led traders to cover short bets.

Cotton for May delivery ended up 1.1% at 60.71 cents a pound on the ICE Futures U.S. exchange, the highest close since Feb. 3 for the most active contract.

"Upside in the market came off of a stronger than forecast reading on export sales last week, as well as a support outside market sentiment," The Hightower Report in Chicago said.

Cotton producers are beginning to plant cotton. So far about 3% of expected U.S. acreage is planted, according to USDA. The government will provide fresh monthly data on world supply and demand for cotton on Tuesday.

Analysts surveyed by the Wall Street Journal expect the USDA to provide a more bullish supply and demand picture for U.S. cotton than the government agency estimated in March, at 12.90 million bales produced, 9.52 million bales exported and 3.54 million bales leftover in stocks versus last month's estimates of 12.94 million bales produced, 9.5 million bales exported and 3.6 million bales in ending stocks.