Cotton jumped to the highest price in almost a month

Cotton jumped to the highest price in almost a month after the U.S. government cut its forecast for production and inventories. Orange juice fell.

U.S. stocks for the year ending July 31 at a total 1.9 million bales, up 14 percent from last month's forecast of 2.2 million, the Agriculture Department said. U.S. Harvest will be 0.8 percent lower than last month's estimate, the agency said. Before today, cotton increased 80 percent this year, heading for the biggest annual gain since 1973.

"We have a number of upbeat U.S. stocks because they reduce the incredibly low numbers," said Sharon Johnson, analyst at Penson future in Atlanta.

Cotton futures for March delivery rose 1.42 cents, or 1 percent, to $ 1.3737 a pound at 9:53 am on U.S. ICE in New York. Earlier, prices shot up by the exchange limit of 5 cents to $ 1.4095, the highest since Nov. 11.

Yields in the U.S., the world's largest exporter, fell to 814 pounds per acre after hail damages crops in Texas, the USDA said. last month's estimate was 821 pounds. Deposits inventories monitored by the ICE have plunged 73 percent this year.

Before today, futures rose 2.7 percent this week, after rising 18 percent last week. The fiber hit a record $ 1.5195 on November 10 on signs that producers would struggle to meet mounting demand in China, the world's largest consumer.

"Overall demand remains enormous," said Tom Mikulski, a high market strategist at Lind-Waldock in Chicago. "The trend is still upwards."

A bullet weighs 480 pounds, or 218 kilograms.

The orange juice futures for January delivery fell 1.25 cents, or 0.8 percent, to $ 1.612 a pound in New York. A close at that level would still leave prices by 2.8 percent in the week.