NEW YORK: ICE cotton futures rose to a three week peak on Monday, after forecasts for hot and dry weather in major cotton growing regions in the United States stoked fears of deteriorating crop conditions.
Cotton contracts for December rose 1.02 cent, or 1.63 %, to 63.68 cents per lb at 01:10 p.m. ET (1710 GMT).
Prices earlier rose to their highest since July 13 at 64.13.
"Cotton is up as weather forecasts in Texas and Georgia are growing hot and dry, making investors concerned about the condition of the crop," said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia.
"The technicals suggest we might knock out the July high and speculators are taking positions."
Above normal temperatures are expected in the west Texas region on Monday, the National Weather Service said in its daily bulletin.
Severe hot and dry conditions in Texas, the biggest cotton producing state in the US, had stoked fears of crop loss leading the contract to gain 1.9% in July.
Investors now eye the United States Department of Agriculture's weekly crop progress report due later on Monday.
There are also concerns of crop damage when tropical storm Isaias, which is expected to be near hurricane strength when it reaches the Carolinas, makes a landfall.
However, "The storm Isaias most possibly could be favourable for cotton than a fear," Brown said, "If not strong enough, it will bring the most anticipated rains."
Cotton speculators cut their net long position by 5,528 contracts to 15,820 in the week to July 28, data from the US Commodity Futures Trading Commission showed.
Total futures market volume rose by 2,709 to 21,240 lots. Data showed total open interest fell 380 to 174,380 contracts in the previous session.
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