All agriculture markets closed higher yesterday, with nearby contracts for cotton posting +3.36% change, followed by soybean at 3.05%, coffee at 2.62%, canola 1.84%, corn 0.96% and wheat 0.5%.

ICE cotton futures closed with a gain of 148 to 230 with lot of activity seen in March 2017 contract. CottonΆs rise can be attributed to a very strong performance of Chinese ZCE and CNCE reflecting the tight supply demand and frenzied mill buying going on there.

ChinaΆs state reserve has been offering an increased 30KMT volume for past two days and is finding buyers for the entire volume. Yesterday, China Cotton Association reported a favorable crop development report and forecasted crop at 4.59Mil MT which is –4.7% lower than last year and 17KMT lower than their July estimate.

There were few reports of key growing regions in US getting too much rain affecting maturity and quality of the harvest.

Australian cotton regions received a decent amount of rainfall across central valleys and Downs region, many rivers are reportedly running full and reservoir levels are rising as well.