Cotton jumps on crop concerns in India, China
Cotton futures rose nearly two percent on Monday, marking their biggest one-day percentage gain in two weeks, as concerns that rain may hurt the new crop prompted buying in India and China. Prices for pipeline stocks in India and China have risen due to rain, which has delayed the arrival of new crops, said Peter Egli, director of risk management at British merchant Plexus Cotton.
“People get nervous and pay up for nearby supplies.” The December cotton contract on ICE Futures US settled up 1.22 cent, or 1.81 percent, the biggest percentage gain since Sept. 6, at 68.5 cents per lb. It traded within a range of 67.18 and 69 cents a lb, the highest level in a week. China cotton futures on the Zhengzhou Commodity Exchange were up 1.40 percent to 14,500 yuan per tonne. The dollar index was down 0.28 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 0.47 percent.