NEW YORK: ICE cotton futures rose to their highest since early March on Monday on persistent worries that unfavourable weather in key growing regions may hurt the natural fibre crop.
Cotton contracts for July rose 0.7 cent, or 0.79 %, to 89.50 cents per lb by 12:25 EDT (1625 GMT).
The contract touched its highest since March 3 of 89.66 cents per lb earlier in the session.
“The main ingredient is the weather, particularly in the Southern plains. Demand is better than what the World Agricultural Supply and Demand Estimates are saying,” said Sid Love, commodity trading adviser at Kansas-based Sid Love Consulting, adding inflation is also playing a role in prices.