Cotton futures rose for the second time in three sessions as adverse weather threatened crops in the U.S., the world’s biggest exporter. Orange juice also gained.
Parts of Texas, the largest cotton-growing state, are in extreme drought, according to the U.S. Drought Monitor in Lincoln, Nebraska. More than half of the country, from Minnesota to New York, has an above-average risk of flooding this spring, according to the National Weather Service.
“It’s time to move into an optimal planting period, and the Texas conditions are too dry, while many other states are too wet,” said Mike Stevens, an independent trader in Mandeville, Louisiana. “That lends the market some support.”
Cotton for July delivery climbed 3.06 cents, or 2 percent, to settle at $1.5751 a pound at 2:47 p.m. on ICE Futures U.S. in New York. The price has gained 89 percent in the past 12 months.
Last month, the fiber tumbled 21 percent as demand eased in China, the leading consumer, following a price rally to a record $2.197 in March.
Orange-juice futures for July delivery climbed 3.3 cents, or 1.9 percent, to $1.729 a pound, capping the fifth straight gain.
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