Commodities
Cotton Jumps as Traders Cover Bearish Bets on Storm, Output Risk
- Hurricane Francine could affect cotton quality in the Delta
- USDA cut cotton output outlook as yields fall to 2015 low
Cotton futures rose as much as 4.3%, to the highest intraday price in two month.
Photographer: Ian Waldie/BloombergThis article is for subscribers only.
Cotton futures surged by the most since February as severe weather risks and a lower production outlook led traders to cover bearish bets, pushing prices higher.
The most-active contract rose as much as 4.3% in New York to 72.82 cents per pound, the highest intraday price in two months. Money managers — whose short bets are near a record in statistics going back to 2006 — are covering positions amid a “perfect cocktail of supply and demand data,” said Walter Kunisch, a senior commodities market strategist at Hilltop Securities Inc.