Cotton futures hit record levels for third day on strength of U.S. exports

Cotton futures reached record levels for the third consecutive day after a report stated U.S. exports climbed, a mark of strong global demand.Cotton futures reached record levels for the third consecutive day after a report stated U.S. exports climbed, a mark of strong global demand.

The U.S. Department of Agriculture announced Thursday that in the week ended February 3, U.S. shipments of cotton climbed 26 percent from the week prior; the U.S. is the world's largest shipper of the commodity and the report is a signal of the seemingly insatiable global demand for the fiber.The U.S. Department of Agriculture announced Thursday that in the week ended February 3, U.S. shipments of cotton climbed 26 percent from the week prior; the U.S. is the world's largest shipper of the commodity and the report is a signal of the seemingly insatiable global demand for the fiber.

Ker Chung Yang, an analyst at Phillip Futures, told Bloomberg the jump in U.S. shipments illustrates how suppliers are struggling to keep up with demand. "The U.S. export sales showed that despite the high price of cotton, demand isn't dipping," he affirmed.Ker Chung Yang, an analyst at Phillip Futures, told Bloomberg the jump in U.S. shipments illustrates how suppliers are struggling to keep up with demand. "The U.S. export sales showed that despite the high price of cotton, demand isn't dipping," he affirmed.

Friday on ICE Futures U.S. in New York, cotton futures for March delivery climbed 2.5 percent, or 4.77 cents, to trade at $1.9235 per pound; earlier in trading, the most-active contract his a record high of $1.9455 per pound.Friday on ICE Futures U.S. in New York, cotton futures for March delivery climbed 2.5 percent, or 4.77 cents, to trade at $1.9235 per pound; earlier in trading, the most-active contract his a record high of $1.9455 per pound.

The USDA stated in a report issued Wednesday that global output will be 115.25 million bales in the year ending July 31 - a slight 0.2 percent drop from its January projections. Still, demand will total 116.55 million bales.  The USDA stated in a report issued Wednesday that global output will be 115.25 million bales in the year ending July 31 - a slight 0.2 percent drop from its January projections. Still, demand will total 116.55 million bales.