Cotton Has Biggest Weekly Gain in 39 Years

Cotton prices rose, capping the biggest weekly gain in 39 years, the growing concern that exports will be limited in India, the second largest producer in the world.

shipments of cotton yarn will be capped at 720,000 metric tons in the year that began October 1 in a bid to stabilize domestic prices and increase supply, the government of India said Dec. 1. New York futures have soared 75 percent this year as demand in China rose and stocks fell in the U.S., the leading exporter.

"India is not reliable," said Keith Brown, president of Keith Brown & Co., a brokerage firm in Moultrie, Georgia. "We have not solved any problem."

For the third consecutive day, the futures prices of U.S. ICE most animals raised. Cotton for March delivery rose the limit of 6 cents, or 4.7 percent, to settle at 1.3234 dollars per pound at 2:56 pm in New York, the biggest gain since July 2009.

May and July contracts also rose by the exchange limit.

This week, the most active contract rose by 18 percent, the most since July 9, 1971. Cotton rose to a record $ 1.5195 on 10 November.

Cotton has "seen a lot of bullish news such problems in India this week and we had some good export sales last week" for U.S. supplies, said Jack Scoville, vice president of futures prices Group Inc . in Chicago. "We have finished our correction, and we go to the races."

The increase in exports

U.S. cotton shipments totaled 322,977 bales in the week ended Nov. 25 compared with 250,684 the previous year, the U.S. Agriculture Department said yesterday. A bullet weighs 480 pounds, or 218 kilograms. China is the largest producer and consumer.

U.S. inventories have fallen 74 percent this year, heading for the biggest annual fall since at least 2003, when the data starts. Stocks held in warehouses monitored by ICE fell to bullets in October 8910, playing at least a minimum of eight years.

In July, there may be a "crisis" in the market because "they have exhausted all of the offer last year and have yet to reap the harvest of next year," said Brown, Keith Brown & Co.. "That's when the market could go into what I call 'the white heat," which is as hot as it gets to the head. "

Last month, the USDA projected to increase plantings by 21 percent to 11.04 million acres in the spring. Wheat and feed grain area decrease, the agency said in a report of 09 November. In India, production will rise to 26 million bales in the season that began on 1 August to 12 percent over the previous year, USDA estimates.

"Squeeze" December

Cotton for December delivery rose to 12.64 cents, or 9.2 percent, to $ 1.4998.

"The pressure we are seeing indicates that the immediate demand for cotton remains strong," said OA Cleveland, analyst cottonexperts.com in Starkville, Mississippi. "People are struggling more than 70,000 bullets."

Last month, Cleveland predicted the contract jumped 20 cents to $ 1,479 went to lapse. The last trading day is December 8.

As of today, 697 contracts, or about 72,500 bales were called for physical delivery, according to the exchange.