Cotton Jumps to Record as China Demand Surges, Output Wanes

Cotton futures soared to a record on speculation that global supplies will fail to keep pace with rising demand in China, the world’s largest user.

Chinese imports surged 86 percent in 2010 as economic growth lifted demand from textile mills and adverse weather hurt the domestic crop. The country’s purchases may increase before next month’s Lunar New Year holidays, said Han Sung Min, a broker at Korea Exchange Bank Futures Co. On Jan. 12, the U.S. government cut its global-production outlook. Prices have more than doubled in the past year.