Cotton Squeeze Sends Prices to Highest Since 2014
- Estimated futures trading rises to record on ICE in New York
- ‘Exports have been really strong,’ INTL FCStone economist says
Cotton crops stand at Legacy Farms in the Nueces County of Chapman Ranch, Texas, U.S., on Tuesday, Aug. 23, 2016. The United States Department of Agriculture (USDA) estimates US export sales of 18,500 bales for cotton in 2017-2018.
Photographer: Eddie Seal/BloombergCotton prices extended a rally to the highest since June 2014 amid buoyant demand for U.S. exports and signs of a squeeze on July futures. Bullish options jumped for the second straight session as volume surged.
On ICE Futures U.S. in New York, cotton futures for July delivery climbed 3.14 cents, or 3.8 percent, to close at 85.32 cents a pound at 2:29 p.m. Earlier, the price surged by the expanded exchange limit of 5 cents to 87.18 cents, the highest for the most-active contract since June 4, 2014. Aggregate volume rose to an estimated record 107,101 contracts. The U.S. is the world’s top exporter.