Cotton Continues to Rise as Australian Floods Surge
Cotton prices jumped the most allowed by ICE Futures U.S. after the most devastating flooding in half a century damaged crops in Australia, the world’s fourth-largest exporter.
Close to 300 000 bales have been lost and that number will continue to rise if the wet weather continues. According to the Australian Cotton Shippers Association, they had forecast record production of more than 4 million bales before the floods. Prices have almost doubled in the past 12 months as growers struggled to meet rising demand from China.
Cotton futures for March delivery rose by the exchange limit of 4 cents, or 2.8 percent, to settle at $1.4725 a pound at 2:41 p.m. on ICE in New York in the biggest gain since Dec. 21. The price touched a record $1.5912 on Dec. 21.
Government data shows the U.S. is forecast to be the largest exporter, followed by India and Uzbekistan.