ICE cotton futures hit their highest levels in two years on Tuesday after the US government slashed its outlook for global inventories by the end of the 2016/2017 crop year and forecast a spike in US exports to a four-year high.
ICE December cotton rose as much as 3.2 percent to 69.97 cents per lb, the highest level for the second-month contract since July 2014, immediately after the release of the US Department of Agriculture's monthly supply and demand report.
Prices were up 2.3 percent
ICE cotton jumped over a percent on Friday following the release of weekly export sales data from the US government, supported by fund buying and broad strength across commodities. The contract registered an over one percent increase for the week as well, the most since the week of June 17. "Cotton had a strong rally on fund buying," said Louis Barbera of ICAP Cotton.
Data from the US Department of Agriculture (USDA) showed sales of upland cotton totaled 201,900 running bales in the week ende