Cotton Rises as U.S. Cuts Harvest Estimate

Bloomberg

Cotton rose Monday, heading for the biggest weekly advance in more than a month, after the U.S. Department of Agriculture cut its estimate of the domestic crop.

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On the New York Board of Trade, the May contract closed at 204.58 cents per pound, up 161 points. December close at 139.10, up 110.

The cotton harvest that ended in December totaled 18.1 million bales, down from 18.32 million estimated in March, the USDA said today in a report. Five analysts surveyed by Bloomberg expected 18.16 million bales. Prices have more than doubled in the past year, touching a record last month, as demand increased in China, the world’s largest user.

“Sentiment is still bullish,” said Chris Kramedjian, a risk-management consultant at FC Stone LLC in Nashville.

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